Walton Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable conts Sales price Materials coat Labor cost Overhead cost $ 36.50 8.30 4.30 5.50 Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 7.00 $129,000 51,000 Walton planned to make and sell 38,000 copies of the book. Required: 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 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Walton Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable conts Sales price Materials coat Labor cost Overhead cost $ 36.50 8.30 4.30 5.50 Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 7.00 $129,000 51,000 Walton planned to make and sell 38,000 copies of the book. Required: 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 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: V&S Mechanical sells and services plumbing, heating, and air conditioning systems V & S's cost…

A: The sales price may be computed using the cost-plus method. In this method, an estimated percentage…

Q: Furlan Printing Corporation, a book printer, has provided the following data: May June July August…

A: A mixed cost contains the variable cost and fixed cost. The least-regression method is used for…

Q: Xia Co. currently buys a component part for $7 per unit. Xia believes that making the part would…

A: RELEVANT COST Relevant costs can be defined as any cost relevant to a decision. A relevant cost…

Q: Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro…

A: The income statement is prepared to show the revenues, expenses, and profit. It indicates the…

Q: QUESTION 3 Jaime Ltd manufactures and sells a small electric product to order for the computer…

A: Absorption Costing - In this costing method cost associated with the manufacturing of a product is…

Q: Splish Golf Ltd. produces and sells special golf balls for $20.00 for a pack of three. In May 2022,…

A: Calculation of total cost per pack for absorption and variable costing with all necessary working…

Q: BiskBisk Tiles is a small distributor of marble tiles. BiskBisk identifies its three major…

A: Solution:- Operating income is an accounting figure that measures the amount of profit…

Q: The following costs are for Optical View Incorporated, a contact lens manufacturer: Output in…

A: Fixed costs are those costs that remain fixed and does not vary with the levels of output. However,…

Q: Dok int int rences The Molding Division of Cotwold Company manufactures a plastic casing used by the…

A: Transfer PricingTransfer pricing methodology is used for setting prices at which products can be…

Q: Select correct option

A: Step 1: Definition of Product Costs:The total costs of a firm can be categorized into product costs…

Q: Sheffield Corporation produces area rugs. The following unit cost information is available: direct…

A: Total cost means the amount incurred to produce a product. It can be variable or fixed cost. Total…

Q: Edalyn Corporation has received a request for a special order of 8,400 units of product Amity for…

Q: Dance in the Dark, Inc., amoung other things, manufactures dolls. The monthly production from an…

A: Relevant Cost In Management accounting the term of Relevant cost is really matter. Relevant cost is…

Q: meducation.com/ext/map/index.html?_con=con&external browser=0&launch Url=https% 253A%252F%252Fne…

A: VarianceIn cost accounting, variance is the difference between an actual result that has been…

Q: Oriole, Inc. can produce 100 units of a component part with the following costs: Direct Materials…

A: Relevant cost is the cost that is different between different alternatives. This cost is considered…

Q: Peach has received a special order for 11,000 units of its product. The product normally sells for…

A: Answer:- Formulas:- 1. Total relevant cost per unit = Direct materials + Direct labor + Variable…

Q: You have been approached by potential client who could bring you considerable business. She says, I…

A: Variances Variances are typically not taken into account. When actual results diverge from…

Q: Rahul

A: The objective of the question is to prepare a pro forma income statement for Walton Publications…

Q: Sheridan Publishing identified the following overhead activities, their respective costs, and their…

A: Overheads are the costs incurred in the production of products other than the material and labor…

Q: Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost…

A: The product cost per unit is calculated as total manufacturing cost divided by number of units…

Q: A packaging employee making $20 per hour can package 80 items during that hour. The direct material…

A: Direct cost is the sum of all the costs that are directly associated with the production process.

Q: Piper Rose Boutique has been approached by the community college to make special polo shirts for the…

A: The relevant cost is the cost that can be affected by the decision of the manager. when a company…

Q: Tchaikovsky Manufacturing Company can make 100 units of a necessary component part with the…

A: Given, Direct materials = $80000Direct labour = $13000Variable manufacturing overhead = $40000Fixed…

Q: 1. Kool Kat Furniture manufactures sofas for distribution to several major retail chains. The…

A: Fixed cost is the cost that does not change with the change in output. Whereas, variable cost is the…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: To compute the variances, we need to determine the standard costs and actual costs, and then…

Q: Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100,…

A: Lets understand the basics.When making decision of continue of discontinue any division of the…

Q: Product-Costing Accuracy, Consumption Ratios Plata Company produces two products: a mostly…

A: Consumption ratio is calculated by dividing activity usage by total usage. Plant Wide Overhead Rate…

Q: Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the…

A: Step 1 Since you have asked multiple questions, we will solve the first question for you. If you…

Question

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
$ 36.50
8.30
4.30
Overhead cost
Selling, general, and administrative costs
Planned fixed costs
5.50
7.00
Manufacturing overhead
Selling, general, and administrative
$129,000
51,000
Walton planned to make and sell 38,000 copies of the book.
Required:
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 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 39,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,
zero variance).)

Flexible Budget
Variances
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Variable selling, general, and administrative costs
Contribution margin
Fixed costs
Manufacturing overhead
Selling, general, and administrative costs
Net income

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1. Make-or-Buy Decision Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $61 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 39% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $29 Direct labor 20 Factory overhead (39% of direct labor) 7.8 Total cost per unit $56.8 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. 2. Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $599,500 and has $349,400 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $63,000.…
Need help on 4. and 5. on this question
Following costs and revenue are incurred/earned by Toy inc. on each unit of teddy bear: Selling price Materials $49 $12 Labour $15 Variable overhead Fixed overhead $7 $6 Toy Inc. has received an offer from a customer. The customer is ready to buy 1,500 unitsat $37 each. However, the customer is asking for customized colouring on the teddy bear'spocket, which will require additional $1 per teddy bear. Should the offer from customer be accepted by Toy Inc.? Accept due to Incremental profit of $3,300. Reject due to Incremental loss of $3,000. Accept due to Incremental profit of $3,000 Reject due to incremental loss of $3,300
Could someone show all the steps and help me fill it in
Epsilon Company can produce a unit of product for the following costs: Direct material $ 8.10 Direct labor 24.10 Overhead 40.50 Total product costs per unit $ 72.70 An outside supplier offers to provide Epsilon with all the units it needs at $64.55 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:
1
Please help me with show all calculation thanku
PT Sinaran Raya has two plans for production activities in 2019 as follows: Requested: 1. Calculate the estimated total production costs for: a. Total estimated production of 12,000 units b. Total estimated production of 10,000 units 2. Calculate the estimated production cost per unit for the production quantities of 12,000 units and 10,000 units 3. What can you conclude from the two planned levels of production activities?
keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Updat еВook Show Me How Print Item Relevant Range and Fixed and Variable Costs Child Play Inc. manufactures electronic toys within a relevant range of 88,400 to 142,800 toys per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. Toys produced 88,400 109,200 142,800 Total costs: Total variable costs $33,592 d. $ j. $ Total fixed costs 37,128 е. k. Total costs $70,720 f. $ 1. $ Cost per unit: Variable cost per unit a. $ g. $ m. Fixed cost per unit b. h. n. Total cost per unit с. $ i. $ o. $ heck My Work 4 more Check My Work uses remaining. ( Previous Next
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total…
dont give answer in image format
Gadubhai