Gibson Manufacturing Company established the following standard price and cost data:

Sales price	$	8.90	per unit
Variable manufacturing cost	$	3.50	per unit
Fixed manufacturing cost	$	2,500	total
Fixed selling and administrative cost	$	700	total

Gibson planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units.

Required

1. Determine the sales and variable cost volume variances.

2. Classify the variances as favorable (F) or unfavorable (U).

   		Volume Variances
   a.	Sales
   b.	Variable manufacturing

4. Determine the amount of fixed cost that will appear in the flexible budget.

   Flexible Budget
   Fixed manufacturing cost
   Fixed selling and administrative costs

5. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.

   	Master Budget	Flexible Budget
   Fixed cost per unit