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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

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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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
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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