Finch 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 Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Finch planned to make and sell 31,000 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 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume Is actually 32.000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (1.e.. zero varlance).) Variable manufacturing costs $36.30 8.40 3.88 5.70 6.50 Fixed costs $127,000 49,000 Master Budget 31,000 $ 0 0 $ Flexible Budgets 30,000 0 $ 32,000 Volume Variances
Finch 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 Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Finch planned to make and sell 31,000 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 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume Is actually 32.000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (1.e.. zero varlance).) Variable manufacturing costs $36.30 8.40 3.88 5.70 6.50 Fixed costs $127,000 49,000 Master Budget 31,000 $ 0 0 $ Flexible Budgets 30,000 0 $ 32,000 Volume Variances
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...
Related questions
Question
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!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
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.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning