Problem 8-21A Determining and interpreting flexible budget variances LO 8-4

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	$	36.10
Materials cost		8.30
Labor cost		4.30
Overhead cost		5.30
Selling, general, and administrative costs		6.70
Planned fixed costs
Manufacturing overhead	$	127,000
Selling, general, and administrative		49,000

Assume that Adams actually produced and sold 36,000 books. The actual sales price and costs incurred follow:

Actual price and variable costs
Sales price	$	35.10
Materials cost		8.50
Labor cost		4.20
Overhead cost		5.35
Selling, general, and administrative costs		6.50
Actual fixed costs
Manufacturing overhead	$	112,000
Selling, general, and administrative		55,000

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).)