Benson Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price$36.30 Materials cost 8.80 Labor cost 4.10 Overhead cost 6.10 Selling, general, and administrative costs 6.80 Planned fixed costs Manufacturing overhead$132,000 Selling, general, and administrative 45,000 Assume that Benson actually produced and sold 32,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price$35.30 Materials cost 9.00 Labor cost 4.00 Overhead cost 6.15 Selling, general, and administrative costs 6.60 Actual fixed costs Manufacturing overhead$117,000 Selling, general, and administrative 51,000 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 Budget Variances#### Sales Revenue- [Input area for Sales revenue variances]#### Variable Manufacturing Costs- **Materials** - [Input area for Materials cost variances]- **Labor** - [Input area for Labor cost variances]- **Overhead** - [Input area for Overhead cost variances] #### Variable Selling, General, and Administrative Costs- [Input area for Variable selling, general, and administrative costs variances]#### Contribution Margin- [Input area for Contribution margin variances]#### Fixed Costs- **Manufacturing Overhead** - [Input area for Manufacturing overhead cost variances]- **Selling, General, and Administrative Costs** - [Input area for Selling, general, and administrative costs variances]#### Net Income- [Input area for Net income variances]Note: The table illustrated above provides a structured template for analyzing flexible budget variances. Each row in the table represents a different type of cost or revenue, and users can fill in the variances for each category. This information is useful for understanding how actual financial performance differs from the budgeted performance, allowing more precise financial planning and control.

Flexible Budget : It is the type of budgets that can be adjusted according to its units produced and…

Answered: son Publications established the…

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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Benson Publications established the following standard price and costs for a hardcover picture book that the company produces.


Standard price and variable costs
Sales price	$	36.30
Materials cost		8.80
Labor cost		4.10
Overhead cost		6.10
Selling, general, and administrative costs		6.80
Planned fixed costs
Manufacturing overhead	$	132,000
Selling, general, and administrative		45,000

Assume that Benson actually produced and sold 32,000 books. The actual sales price and costs incurred follow:


Actual price and variable costs
Sales price	$	35.30
Materials cost		9.00
Labor cost		4.00
Overhead cost		6.15
Selling, general, and administrative costs		6.60
Actual fixed costs
Manufacturing overhead	$	117,000
Selling, general, and administrative		51,000

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 Variances

#### Sales Revenue
- [Input area for Sales revenue variances]

#### Variable Manufacturing Costs
- **Materials**
- [Input area for Materials cost variances]
- **Labor**
- [Input area for Labor cost variances]
- **Overhead**
- [Input area for Overhead cost variances]

#### Variable Selling, General, and Administrative Costs
- [Input area for Variable selling, general, and administrative costs variances]

#### Contribution Margin
- [Input area for Contribution margin variances]

#### Fixed Costs
- **Manufacturing Overhead**
- [Input area for Manufacturing overhead cost variances]
- **Selling, General, and Administrative Costs**
- [Input area for Selling, general, and administrative costs variances]

#### Net Income
- [Input area for Net income variances]

Note: The table illustrated above provides a structured template for analyzing flexible budget variances. Each row in the table represents a different type of cost or revenue, and users can fill in the variances for each category. This information is useful for understanding how actual financial performance differs from the budgeted performance, allowing more precise financial planning and control.

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