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Adams Manufacturing Company established the following standard price and cost data: Sales price $ 8.50 per...

Adams Manufacturing Company established the following standard price and cost data:

Sales price $ 8.50 per unit
Variable manufacturing cost $ 3.70 per unit
Fixed manufacturing cost $ 2,800 total
Fixed selling and administrative cost $ 600 total

Adams planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.

Assume that the actual sales price is $8.15 per unit and that the actual variable cost is $3.95 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $620.

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).)

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Expert Solution

ekkarill92 answered 2 years ago
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