Problem 15-21A (Algo) Determining and interpreting flexible budget variances LO 15-5Franklin Publications established the following standard price and costs for a hardcover picture book that the company producesStandard price and varlable costsSales priceMaterials costLabor costOverhead costSelling, general, and administrative costsPlanned fixed costsManufacturing overheadSelling, general, and adeinistrative$ 30.308.403.605.406.s0$133,00047,080Assume that Franklin actually produced and sold 26,000 books. The actual sales price and costs incurred followActual price and variable costsSales priceMaterials cost$ 35.308.603.5eLabor costOverhead cost5.45Selling, general, and adeinistrative costsActuel fixed costs6.60Manufacturing overheadSelling, general, and adeinistrative$118,00053,00e Requireda. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select"None" if there is no effect (i.e., zero variance).)Flexible BudgetVariancasSales revenueVariable manufacturing costsMaterialsLaborOverheadVariable selling general, and administrative costsContribution marginFixed costsManufacturing overheadSelling. general and administrative costsNet income

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Answered: Required a. & b. Determine the flexible…

Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U) (Select "None" if there is no effect (i.e., zero variance).)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

Problem 15-21A (Algo) Determining and interpreting flexible budget variances LO 15-5
Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces
Standard price and varlable costs
Sales price
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Planned fixed costs
Manufacturing overhead
Selling, general, and adeinistrative
$ 30.30
8.40
3.60
5.40
6.s0
$133,000
47,080
Assume that Franklin actually produced and sold 26,000 books. The actual sales price and costs incurred follow
Actual price and variable costs
Sales price
Materials cost
$ 35.30
8.60
3.5e
Labor cost
Overhead cost
5.45
Selling, general, and adeinistrative costs
Actuel fixed costs
6.60
Manufacturing overhead
Selling, general, and adeinistrative
$118,000
53,00e

Required
a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select
"None" if there is no effect (i.e., zero variance).)
Flexible Budget
Variancas
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Variable selling general, and administrative costs
Contribution margin
Fixed costs
Manufacturing overhead
Selling. general and administrative costs
Net income

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