Ghu Perez Publications established the following standard price and costs for a hardcover picture book that the company produces:Standard price and variable costsSales priceMaterials costLabor costOverhead costSelling, general, and administrative costsPlanned fixed costsManufacturing overheadSelling, general, and administrativePerez planned to make and sell 29,000 copies of the book.Number of unitsRequired: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 volumeis 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 costsFixed costs$36.008.904.405.906.50Master Budget29,000$ 132,00054,000Flexible Budgets28,000< Prev30,0001 of 4Volume VariancesNext >

A master budget is the principal planning instrument used by a management team to direct business…

Answered: Perez Publications established the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Thornton 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 $ 36.90 9.00 3.80 5.70 6.60 $135,000 45,000 Thornton planned to make and sell 29,000 copies of the book. Required: a.-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 (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Walton 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 $36.70 8.90 4.30 5.80 7.00 $131,000 52,000 Walton planned to make and sell 31,000 copies of the book. Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e..
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Campbell Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $4 36.90 Materials cost 8.20 Labor cost 4.00 Overhead cost 6.10 Selling, general, and administrative costs Planned fixed costs 7.10 Manufacturing overhead Selling, general, and administrative $131,000 45,000 Campbell planned to make and sell 31,000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Master Budget Flexible Budgets Volume Variances Number of units 31,000 30,000 32,000 Variable manufacturing costs
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1.
Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
Gerber Clothing Inc. has designed a rain suit for outdoor enthusiasts that is about to be introduced on the market. A standard cost card has been prepared for the new suit, as follows: Direct materials Direct labour Manufacturing overhead (1/6 variable) Total standard cost per suit Salaries Advertising and other Total $ 98,455 437,000 $535,455 Standard Quantity or hours a. The only variable selling and administrative costs will be $7 per suit for shipping. Fixed selling and administrative costs will be as follows (per year): 2.6 metres 1.0 hours 1.0 hours Markup percentage Standard price or Rate $ 15 per metre 37 per hour 27 per hour b. Since the company manufactures many products, it is felt that no more than 10,900 hours of labour time per year can be devoted to production of the new suits. c. An investment of $590,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment. The company wants a 20% ROI in new product lines. d. Manufacturing…
JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Given the following information complete a CVP analysis for JPL, Incorporated: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $ 75 per unit $45 per unit $ 210,000 Required: Use the data to answer the following. 1. Compute the CM ratio and variable expense ratio. 2. Compute the break-even sales. 3. Compute the margin of safety. 4. Compute the degree of operating leverage.
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,200 per unit, of which $820 is product cost and $380 is selling and administrative expenses. In addition, the total cost of $1,200 is made up of $680 variable cost and $520 fixed cost. The desired profit is $180 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
Use the information given in the image to prepare the Income Statement for March 2022 according to theabsorption costing method.

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