Zachary Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.70 Materials cost 8.30 Labor cost 4.30 Overhead cost 5.30 Selling, general, and administrative costs 7.00 Planned fixed costs Manufacturing overhead $ 125,000 Selling, general, and administrative 53,000 Assume that Zachary actually produced and sold 34,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.70 Materials cost 8.50 Labor cost 4.20 Overhead cost 5.35 Selling, general, and administrative costs 6.80 Actual fixed costs Manufacturing overhead $ 110,000 Selling, general, and administrative 59,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U).
Zachary Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.70 Materials cost 8.30 Labor cost 4.30 Overhead cost 5.30 Selling, general, and administrative costs 7.00 Planned fixed costs Manufacturing overhead $ 125,000 Selling, general, and administrative 53,000 Assume that Zachary actually produced and sold 34,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.70 Materials cost 8.50 Labor cost 4.20 Overhead cost 5.35 Selling, general, and administrative costs 6.80 Actual fixed costs Manufacturing overhead $ 110,000 Selling, general, and administrative 59,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zachary Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 36.70 | |
| Materials cost | 8.30 | ||
| Labor cost | 4.30 | ||
| 5.30 | |||
| Selling, general, and administrative costs | 7.00 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 125,000 | |
| Selling, general, and administrative | 53,000 | ||
Assume that Zachary actually produced and sold 34,000 books. The actual sales price and costs incurred follow:
| Actual price and variable costs | |||
| Sales price | $ | 35.70 | |
| Materials cost | 8.50 | ||
| Labor cost | 4.20 | ||
| Overhead cost | 5.35 | ||
| Selling, general, and administrative costs | 6.80 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 110,000 | |
| Selling, general, and administrative | 59,000 | ||
Required
a. & b. Determine the flexible
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