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 $ 36.80 Materials cost 8.10 Labor cost 3.70 Overhead cost 6.10 Selling, general, and administrative costs 7.20 Planned fixed costs Manufacturing overhead $ 133,000 Selling, general, and administrative 52,000 Assume that Zachary actually produced and sold 35,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.80 Materials cost 8.30 Labor cost 3.60 Overhead cost 6.15 Selling, general, and administrative costs 7.00 Actual fixed costs Manufacturing overhead $ 118,000 Selling, general, and administrative 58,000 Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Revenue- Materials- Labor- Overhead- Variable selling, general and admin cost- contribution margin- manufactured overhead- selling, general and admin costs- net income-
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 $ 36.80 Materials cost 8.10 Labor cost 3.70 Overhead cost 6.10 Selling, general, and administrative costs 7.20 Planned fixed costs Manufacturing overhead $ 133,000 Selling, general, and administrative 52,000 Assume that Zachary actually produced and sold 35,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.80 Materials cost 8.30 Labor cost 3.60 Overhead cost 6.15 Selling, general, and administrative costs 7.00 Actual fixed costs Manufacturing overhead $ 118,000 Selling, general, and administrative 58,000 Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Revenue- Materials- Labor- Overhead- Variable selling, general and admin cost- contribution margin- manufactured overhead- selling, general and admin costs- net income-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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 | $ | 36.80 | |
Materials cost | 8.10 | ||
Labor cost | 3.70 | ||
Overhead cost | 6.10 | ||
Selling, general, and administrative costs | 7.20 | ||
Planned fixed costs | |||
Manufacturing overhead | $ | 133,000 | |
Selling, general, and administrative | 52,000 | ||
Assume that Zachary actually produced and sold 35,000 books. The actual sales price and costs incurred follow:
Actual price and variable costs | |||
Sales price | $ | 35.80 | |
Materials cost | 8.30 | ||
Labor cost | 3.60 | ||
Overhead cost | 6.15 | ||
Selling, general, and administrative costs | 7.00 | ||
Actual fixed costs | |||
Manufacturing overhead | $ | 118,000 | |
Selling, general, and administrative | 58,000 | ||
Required
a. & b. Determine the flexible
Sales Revenue-
Materials-
Labor-
Overhead-
Variable selling, general and admin cost-
contribution margin-
manufactured overhead-
selling, general and admin costs-
net income-
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