Rundle 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 $ 36.60 8.60 3.90 6.10 6.80 $133,000 45,000 Rundle planned to make and sell 35,000 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 34,000 and 36,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 36,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Rundle 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 $ 36.60 8.60 3.90 6.10 6.80 $133,000 45,000 Rundle planned to make and sell 35,000 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 34,000 and 36,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 36,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rundle 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
$
36.60
8.60
3.90
6.10
6.80
$133,000
45,000
Rundle planned to make and sell 35,000 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 34,000 and 36,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 36,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,
zero variance).)
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