Reference: Survey of Accounting 6th edition Book

Based on Chapter 15

Rooney Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.80 Materials cos 8.70 Labor cost 3.70 Overhead cost Selling, general, and administrative costs 6 60 lanned fixed costs Manufacturing overhead 133,000 Selling, general, and administrative 48.000 Assume that Rooney actually produced and sold 30,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price 35.80 Materials cost 8.90 Labor cost 3.60 Overhead cost 6.35 Selling, general, and administrative costs 6.40 Actual fixed costs Manufacturing overhead $ 118,000 Selling, general, and administrative 54,000 Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is 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 Overhead Variable selling, general, and administrative costs Contribution margin Fixed cost Manufacturing overhead Selling, general, and administrative costs Net income References Worksheet Difficulty: 2 Medium Problem 15-21A (Algo) Learning Objective: 15-05 Compute and Determining and interpreting interpret flexible budget variances. flexible budget variances LO 15-5