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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 Hanufacturing overhead Selling, general, and administrative $36.80 9.00 3.80 5.60 6.60 Number of units $132,000 52,000 Campbell planned to make and sell 39,000 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 38.000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units, Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i... zero variance).) Master Budget 30,000 1.435,200 S Flexible Budgets 30,000 1 300 400 Volume Variances 40,000 $1,472,000 $ 30,000,

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 Hanufacturing overhead Selling, general, and administrative $36.80 9.00 3.80 5.60 6.60 Number of units $132,000 52,000 Campbell planned to make and sell 39,000 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 38.000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units, Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i... zero variance).) Master Budget 30,000 1.435,200 S Flexible Budgets 30,000 1 300 400 Volume Variances 40,000 $1,472,000 $ 30,000,

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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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 Hanufacturing overhead Selling, general, and administrative $36.88 9.00 3.80 Number of units 5.60 6.60 $132,000 $2,000 Campbell planned to make and sell 39,000 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 38,000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units, Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.... zero variance).) Master Budget 39,000 $ 1,435,200 Flexible Budgets 30,000 1,308,400 Volume Variances 40,000 $1472.000 $ 36,000 F
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 Hanufacturing overhead Selling, general, and administrative $36.88 9.00 3.80 Number of units 5.60 6.60 $132,000 $2,000 Campbell planned to make and sell 39,000 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 38,000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units, Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.... zero variance).) Master Budget 39,000 $ 1,435,200 Flexible Budgets 30,000 1,308,400 Volume Variances 40,000 $1472.000 $ 36,000 F
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 38,000 and 40,000 units. Determine the sales and variable cost volume varlances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Number of units Variable manufacturing costs Materials Labor Manufacturing overhead Variable selling general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Fixed selling, general, and administrative costs Net income Master Budget 39,000 1,435,200 $ $ ✪ 5 1,435,200 1,435,200 1,398,400 Flexible Budgets 38,000 $ 1,398,400 1.398 400 40,000 $ 1,472,000 $36,800 F 1,472,000 Volume Variances $1,472,000
Transcribed Image Text: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 38,000 and 40,000 units. Determine the sales and variable cost volume varlances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Number of units Variable manufacturing costs Materials Labor Manufacturing overhead Variable selling general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Fixed selling, general, and administrative costs Net income Master Budget 39,000 1,435,200 $ $ ✪ 5 1,435,200 1,435,200 1,398,400 Flexible Budgets 38,000 $ 1,398,400 1.398 400 40,000 $ 1,472,000 $36,800 F 1,472,000 Volume Variances $1,472,000
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