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Problem 15-21 Determining and interpreting flexible budget variances LO 15-5 Franklin Publications established the following standard price and costs for a hardcover picture book that

Problem 15-21 Determining and interpreting flexible budget variances LO 15-5

Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces.

Standard price and variable costs
Sales price $ 36.50
Materials cost 8.10
Labor cost 3.70
Overhead cost 6.10
Selling, general, and administrative costs 6.50
Planned fixed costs
Manufacturing overhead $ 131,000
Selling, general, and administrative 47,000

Assume that Franklin actually produced and sold 26,000 books. The actual sales price and costs incurred follow:

Actual price and variable costs
Sales price $ 35.50
Materials cost 8.30
Labor cost 3.60
Overhead cost 6.15
Selling, general, and administrative costs 6.30
Actual fixed costs
Manufacturing overhead $ 116,000
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).)

image text in transcribed

Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general,and administrative costs Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income

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