Fanning Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.50 per unit $ 4.00 per unit $2,100 total $ 600 total Fanning planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units. Assume that the actual sales price is $8.15 per unit and that the actual variable cost is $4.20 per unit. The actual fixed manufacturing cost is $1,400, and the actual selling and administrative costs are $620. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Fanning Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.50 per unit $ 4.00 per unit $2,100 total $ 600 total Fanning planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units. Assume that the actual sales price is $8.15 per unit and that the actual variable cost is $4.20 per unit. The actual fixed manufacturing cost is $1,400, and the actual selling and administrative costs are $620. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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