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Rooney Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Rooney planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.65 per unit and that the actual variable cost is $4.00 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $635. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zero variance).) Sales Variable manufacturing Contribution margin $9.00 per unit $ 3.70 per unit $2,500 total $ 600 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances

Rooney Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Rooney planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.65 per unit and that the actual variable cost is $4.00 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $635. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zero variance).) Sales Variable manufacturing Contribution margin $9.00 per unit $ 3.70 per unit $2,500 total $ 600 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances

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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Rooney Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Rooney planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.65 per unit and that the actual variable cost is $4.00 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $635. $9.00 per unit $ 3.70 per unit $2,500 total $ 600 total Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Variable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances
Transcribed Image Text:Rooney Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Rooney planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.65 per unit and that the actual variable cost is $4.00 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $635. $9.00 per unit $ 3.70 per unit $2,500 total $ 600 total Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Variable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances
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