Question
Keller Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price
Keller Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 36.10 | |
| Materials cost | 8.60 | ||
| Labor cost | 3.80 | ||
| Overhead cost | 5.60 | ||
| Selling, general, and administrative costs | 7.00 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 127,000 | |
| Selling, general, and administrative | 51,000 | ||
Assume that Keller actually produced and sold 40,000 books. The actual sales price and costs incurred follow:
| Actual price and variable costs | |||
| Sales price | $ | 35.10 | |
| Materials cost | 8.80 | ||
| Labor cost | 3.70 | ||
| Overhead cost | 5.65 | ||
| Selling, general, and administrative costs | 6.80 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 112,000 | |
| Selling, general, and administrative | 57,000 | ||
Required
- Determine the flexible budget variances
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Making Sense Of Audit Business Side Of General Practice
Authors: Donald Sal Irvine
1st Edition
1870905121, 978-1870905121
