Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Campbell Publications established the following standard price and costs for a hardcover picture book that th produces. Standard price and variable costs Sales price Materials cost Labor cost $36.50 8.90 3.60

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Chapter1: Financial Statements And Business Decisions
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Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4
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
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Planned fixed costs
Manufacturing overhead
Selling, general, and administrative
Number of units
Variable manufacturing costs
$36.50
Fixed costs
8.90
3.60
6.30
Campbell planned to make and sell 40,000 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 39,000 and 41,000 units. Determine the sales and variable cost volume
variances, assuming volume is actually 41,000 units. Indicate whether the variances are favorable (F) or unfavorable (U).
(Select "None" if there is no effect (i.e., zero variance).)
6.40
$ 133,000
47,000
Master Budget Flexible Budgets Volume Variances
40,000
39,000
41,000
Transcribed Image Text:Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 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 Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Variable manufacturing costs $36.50 Fixed costs 8.90 3.60 6.30 Campbell planned to make and sell 40,000 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 39,000 and 41,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 41,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) 6.40 $ 133,000 47,000 Master Budget Flexible Budgets Volume Variances 40,000 39,000 41,000
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