Allard Manufacturing Company established the following standard price and cost data. Sales price $ 8.60 per unit Variable manufacturing cost $ 3.80 per unit Fixed manufacturing cost $ 2,800 total Fixed selling and administrative cost $ 800 total Allard planned to produce and sell 2,900 units. Actual production and sales amounted to 3,100 units. Assume that the actual sales price is $8.25 per unit and that the actual variable cost is $3.95 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $825.

Required a. & b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U).

Flexible Budget Variables

Sales

Variable Manufacturing

Contribution Margin

Fixed Manufacturing

Fixed Selling and Administrative Cost

Net Income (loss)