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Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Number of units Manufacturing overhead Selling, general, and administrative Solomon planned to make and sell 36,000 copies of the book. Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs Master Budget 36,000 $ 0 $ 37.00 8.10 0 $ 3.70 5.60 7.00 $ 128,000 49,000 Flexible Budgets 35,000 0 $ 37,000 0 or Volume Variances favorable

Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Number of units Manufacturing overhead Selling, general, and administrative Solomon planned to make and sell 36,000 copies of the book. Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs Master Budget 36,000 $ 0 $ 37.00 8.10 0 $ 3.70 5.60 7.00 $ 128,000 49,000 Flexible Budgets 35,000 0 $ 37,000 0 or Volume Variances favorable

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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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 Solomon planned to make and sell 36,000 copies of the book. Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Number of units Variable manufacturing costs Fixed costs Master Budget 36,000 $ 0 $ 37.00 8.10 3.70 5.60 7.00 0 $ $ 128,000 49,000 Flexible Budgets 35,000 0 0 $ 37,000 0 0 Volume Variances Unfavorable
Transcribed Image Text: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 Solomon planned to make and sell 36,000 copies of the book. Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Number of units Variable manufacturing costs Fixed costs Master Budget 36,000 $ 0 $ 37.00 8.10 3.70 5.60 7.00 0 $ $ 128,000 49,000 Flexible Budgets 35,000 0 0 $ 37,000 0 0 Volume Variances Unfavorable
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