Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $ 3.70 per unit $2,100 total $ 800 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Vernon planned to produce and sell 2,700 units. Actual production and sales amounted to 2,900 units. Assume that the actual sales price is $8 80 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $1,900, and the actual selling and administrative costs are $830. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U) (Select "None" if there is no effect (i.e., zero variance).) Answer is complete but not entirely correct. Flexible Budget Variances 580 U U 580 1,160 U 200 F 30 960 Sales Vanable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Not income (loss) $ $ U U
Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $ 3.70 per unit $2,100 total $ 800 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Vernon planned to produce and sell 2,700 units. Actual production and sales amounted to 2,900 units. Assume that the actual sales price is $8 80 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $1,900, and the actual selling and administrative costs are $830. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U) (Select "None" if there is no effect (i.e., zero variance).) Answer is complete but not entirely correct. Flexible Budget Variances 580 U U 580 1,160 U 200 F 30 960 Sales Vanable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Not income (loss) $ $ U U
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...
Related questions
Question
Vikrambhai
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub