Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $ 3.70 per unit $2,100 total $ 800 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Vernon planned to produce and sell 2,700 units. Actual production and sales amounted to 2,900 units. Assume that the actual sales price is $8 80 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $1,900, and the actual selling and administrative costs are $830. 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).) Answer is complete but not entirely correct. Flexible Budget Variances 580 U U 580 1,160 U 200 F 30 960 Sales Vanable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Not income (loss) $ $ U U
Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $ 3.70 per unit $2,100 total $ 800 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Vernon planned to produce and sell 2,700 units. Actual production and sales amounted to 2,900 units. Assume that the actual sales price is $8 80 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $1,900, and the actual selling and administrative costs are $830. 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).) Answer is complete but not entirely correct. Flexible Budget Variances 580 U U 580 1,160 U 200 F 30 960 Sales Vanable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Not income (loss) $ $ U U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vikrambhai
Transcribed Image Text:Vernon Manufacturing Company established the following standard price and cost data:
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative cost
Vernon planned to produce and sell 2,700 units. Actual production and sales amounted to 2,900 units
Assume that the actual sales price is $8 80 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing
cost is $1,900, and the actual selling and administrative costs are $830.
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).)
Answer is complete but not entirely correct.
Flexible Budget
Variances
580
580
Sales
Variable manufacturing
Contribution margin
Fixed manufacturing
Fixed selling and administrative
cost
Not income (loss)
$
1,160
200
$9.00 per unit
$ 3.70 per unit
$2,100 total
$ 800 total
30
960
U
U
F
U
U
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