Walton 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 Walton planned to make and sell 37,000 copies of the book. Required: $ 36.50 8.70 3.90 5.50 6.70 $ 126,000 46,000 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 36,000 and 38,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 38,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Number of units Variable manufacturing costs Fixed costs Master Budget 37,000 Flexible Budgets 36,000 Volume Variances 38,000 0 0 $ 0 $ 0 $ 0
Walton 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 Walton planned to make and sell 37,000 copies of the book. Required: $ 36.50 8.70 3.90 5.50 6.70 $ 126,000 46,000 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 36,000 and 38,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 38,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Number of units Variable manufacturing costs Fixed costs Master Budget 37,000 Flexible Budgets 36,000 Volume Variances 38,000 0 0 $ 0 $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rahul
Transcribed Image Text:Walton 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
Walton planned to make and sell 37,000 copies of the book.
Required:
$ 36.50
8.70
3.90
5.50
6.70
$ 126,000
46,000
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 36,000 and 38,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 38,000 units. Indicate whether the variances are favorable (F) or unfavorable (U).
Note: Select "None" if there is no effect (i.e., zero variance).
Number of units
Variable manufacturing costs
Fixed costs
Master Budget
37,000
Flexible Budgets
36,000
Volume Variances
38,000
0
0
$
0
$
0
$
0
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