Question
Lloyd Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price
| Lloyd Publications established the following standard price and costs for a hardcover picture book that the company produces. |
| Standard price and variable costs | ||
| Sales price | $ | 37.00 |
| Materials cost | 8.30 | |
| Labor cost | 3.70 | |
| Overhead cost | 6.30 | |
| Selling, general, and administrative costs | 6.90 | |
| Planned fixed costs | ||
| Manufacturing overhead | $ | 133,000 |
| Selling, general, and administrative | 47,000 |
| Assume that Lloyd actually produced and sold 36,000 books. The actual sales price and costs incurred follow. |
| Actual price and variable costs | ||
| Sales price | $ | 36.00 |
| Materials cost | 8.50 | |
| Labor cost | 3.60 | |
| Overhead cost | 6.35 | |
| Selling, general, and administrative costs | 6.70 | |
| Actual fixed costs | ||
| Manufacturing overhead | $ | 118,000 |
| Selling, general, and administrative | 53,000 |
| Required |
| a. & b. | Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) |
|
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Statistics For The Behavioral Sciences
Authors: Frederick J Gravetter, Larry B. Wallnau
9th Edition
1111830991, 978-1111830991
