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Solomon Manufacturing Company established the following standard price and cost data. Sales price $ 8.90 per unit Variable manufacturing cost $ 3.60 per unit Fixed

Solomon Manufacturing Company established the following standard price and cost data.

Sales price $ 8.90 per unit

Variable manufacturing cost $ 3.60 per unit

Fixed manufacturing cost $ 2,200 total

Fixed selling and administrative cost $ 500 total

Solomon planned to produce and sell 2,900 units. Actual production and sales amounted to 3,200 units. Required

a. Determine the sales and variable cost volume variances.

b. Classify the variances as favorable (F) or unfavorable (U).

c. Determine the amount of fixed cost that will appear in the flexible budget.

d. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.

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