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-

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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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-

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