Question
Roo Zachary Manufacturing Company established the following standard price and cost data: Sales price $ 8.40 per unit Variable manufacturing cost $ 3.20 per unit
Roo
Zachary Manufacturing Company established the following standard price and cost data:
Sales price | $ | 8.40 | per unit |
Variable manufacturing cost | $ | 3.20 | per unit |
Fixed manufacturing cost | $ | 2,300 | total |
Fixed selling and administrative cost | $ | 600 | total |
Zachary planned to produce and sell 2,900 units. Actual production and sales amounted to 3,200 units.
Assume that the actual sales price is $8.05 per unit and that the actual variable cost is $3.50 per unit. The actual fixed manufacturing cost is $1,700, and the actual selling and administrative costs are $635.
Required
a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
ney Manufacturing Company established the following standard price and cost data.
Sales price | $ | 8.40 | per unit |
Variable manufacturing cost | $ | 3.40 | per unit |
Fixed manufacturing cost | $ | 2,400 | total |
Fixed selling and administrative cost | $ | 600 | total |
Rooney planned to produce and sell 2,400 units. Actual production and sales amounted to 2,500 units.
Required
-
Determine the sales and variable cost volume variances.
-
Classify the variances as favorable (F) or unfavorable (U).
-
Determine the amount of fixed cost that will appear in the flexible budget.
-
Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started