Ponca Food Corporation developed the following standard price and costs for a refrigerated TV dinner that company produces. Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative costs $5.28 1.50 0.64 0.12 0.36 $168,000 92,000 Ponca plans to make and sell 400,000 TV dinners. A. Prepare the pro forma income statement that would appear in the master budget. b. Prepare flexible budget income statements, assuming production and sales volumes of 360,000 and 440,000 units. c. Determine the sales and variable cost volume variances, assuming volume is actually 380,000 units.
Ponca Food Corporation developed the following standard price and costs for a refrigerated TV dinner that company produces. Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative costs $5.28 1.50 0.64 0.12 0.36 $168,000 92,000 Ponca plans to make and sell 400,000 TV dinners. A. Prepare the pro forma income statement that would appear in the master budget. b. Prepare flexible budget income statements, assuming production and sales volumes of 360,000 and 440,000 units. c. Determine the sales and variable cost volume variances, assuming volume is actually 380,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ponca Food Corporation developed the
following standard price and costs for a
refrigerated TV dinner that company
produces.
Actual price and variable costs
Sales price
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Actual fixed costs
Manufacturing overhead
Selling, general, and administrative costs
$5.28
1.50
0.64
0.12
0.36
$168,000
92,000
Ponca plans to make and sell 400,000 TV
dinners.
A. Prepare the pro forma income statement
that would appear in the master budget.
b. Prepare flexible budget income
statements, assuming production and sales
volumes of 360,000 and 440,000 units.
c. Determine the sales and variable cost
volume variances, assuming volume is
actually 380,000 units.
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