Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Munoz 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 36.00 8.70 4.20 5.60 6.80 $130,000 50,000 Munoz planned to make and sell 21,000 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 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variancel.) Munoz planned to make and sell 21,000 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 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Slect "None" if there is no effect (.e., zero variance).) Volume Variances Master Budget 21,000 Flexible Budgets 20,000 22,000 Number of units Variable manufacturing costs Fixed costs Problem 15-21 Determining and Interpreting flexible budget varlances LO 15-5 Adams 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 36.20 8.90 4.20 6.30 7.00 $129,000 53,000 Assume that Adams actually produced and sold 33,000 books. The actual sales price and costs incurred follow: $ Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Sallinn neneral and administrative costs 35.20 9.10 4.10 6.35 6. Assume that Adams actually produced and sold 33,000 books. The actual sales price and costs incurred follow. $ Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative 35.20 9.10 4.10 6.35 6.80 $114,000 59,000 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).) Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor 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 (.e., zero variance).) Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general and administrative costs Contribution margin Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income
