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Perez Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 29,000 copies of the book. Number of units Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs $36.00 8.90 4.40 5.90 6.50 Master Budget 29,000 $ 132,000 54,000 Flexible Budgets 28,000 < Prev 30,000 1 of 4 + HH Volume Variances Next >

Perez Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 29,000 copies of the book. Number of units Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs $36.00 8.90 4.40 5.90 6.50 Master Budget 29,000 $ 132,000 54,000 Flexible Budgets 28,000 < Prev 30,000 1 of 4 + HH Volume Variances Next >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Perez Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 29,000 copies of the book. Number of units Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs $36.00 8.90 4.40 5.90 6.50 Master Budget 29,000 $ 132,000 54,000 Flexible Budgets 28,000 < Prev 30,000 1 of 4 Volume Variances Next >
Transcribed Image Text:Perez Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 29,000 copies of the book. Number of units Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs $36.00 8.90 4.40 5.90 6.50 Master Budget 29,000 $ 132,000 54,000 Flexible Budgets 28,000 < Prev 30,000 1 of 4 Volume Variances Next >
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