Question
In: Accounting
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).)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Gibson Manufacturing Company established the following standard price and cost data. Sales price $ 8.60 per...
Gibson Manufacturing Company established the following standard
price and cost data.
Sales price
$
8.60
per unit
Variable manufacturing cost
$
3.10
per unit
Fixed manufacturing cost
$
2,600
total
Fixed selling and administrative cost
$
900
total
Gibson planned to produce and sell 2,800 units. Actual production
and sales amounted to 3,100 units.
Required
Prepare the pro forma income statement in contribution format
that would appear in a master budget.
Prepare the pro forma income statement in contribution format...
Engle Manufacturing Company established the following standard price and cost information: sales price $50 per unit...
Engle Manufacturing Company established the following standard
price and cost
information:
sales price
$50 per unit
variable Manufacturing cost
32 per unit
fixed manufacturing cost
$100,000 total
fixed selling and administrative cost
$40,000 tota
Engle expected
to produce and sell 15,000 units. Actual production and sales
amounted to 16,000 units.
Required:
(a) Determine the sales volume variances, including variances for
number of units, sales
revenue, variable manufacturing cost, fixed manufacturing cost, and
fixed selling and
administrative cost.
(b) Classify the...
Zachary Manufacturing Company established the following standard price and cost data:
Zachary Manufacturing Company established the following standard
price and cost data: Sales price$8.90per unitVariable manufacturing cost$3.70per unitFixed manufacturing cost$2,100totalFixed selling and administrative cost$1,000totalZachary planned to produce and sell 3,000 units. Actual
production and sales amounted to 3,300 units.Assume that the actual sales price is $8.70 per unit and that
the actual variable cost is $3.95 per unit. The actual fixed
manufacturing cost is $1,900, and the actual selling and
administrative costs are $1,030.Requireda.&b. Determine the flexible budget
variances and classify the...
Saudia Manufacturing Company established the following standard price and cost information: Sales...
Saudia Manufacturing Company established the following standard
price and cost information:
Sales price $ 50 per unit
Variable manufacturing cost 32
per unit
Fixed manufacturing cost $
100,000 total
Fixed selling and administrative cost $
40,000 total
Saudia Company expected to produce and sell 25,000 units. Actual
production and sales amounted to 26,500 units.
Required: Complete the following table
(a) Determine the sales volume variances, including variances for
number of units, sales revenue, variable manufacturing...
A digital camera manufacturing company has the cost data given in the following table: Sales price...
A digital camera
manufacturing company has the cost data given in the following
table:
Sales price
$783
Units sold
29,669
Direct labor
$1,503,075
Materials
$6,348,961
Overhead
$2,614,707
Total operating expense
$2,740,386
% Profit
Calculate the
percentage profit
Winslow Manufacturing Company has the following unit data: Sales price  
Winslow Manufacturing Company has the following unit data:
Sales
price
$600.00
Direct
materials
250.00
Direct
labor
150.00
Variable
overhead
35.00
Fixed overhead (based on 8,000
units)
30.00
Marketing and administrative
costs:
Variable
25.00
Fixed (based on 8,000
units)
15.00
8,000 units were produced. There were
no units in beginning Finished Goods Inventory and 1,500 units in
ending Finished Goods Inventory.
Required:
Compute the unit product using absorption
costing and variable costing.
Prepare an income...
Rundle Manufacturing Company produces a single product. The following data apply to the standard cost of...
Rundle Manufacturing Company produces a single product.
The following data apply to the standard cost of materials and
labor associated with making the product:
Materials quantity per unit
1
pound
Materials price
$
6.10
per pound
Labor quantity per unit
2
hours
Labor price
$
10.10
per hour
During the year, the company made 2,020 units of product. At the
end of the year, the following variances had been calculated.
Materials usage variance
$
1,159
Favorable
Materials price variance
$...
The following direct materials standards have been established for a particular product: Standard price per unit...
The following direct materials standards have been established
for a particular product:
Standard price per unit of output……………………. $4.00
Standard quantity……………………….………………….. 3 lbs.
The following data pertain to operations concerning the product
for the last month:
Actual products manufactured…………………………………..……… 2,000
Actual material purchased and used……..………………..………….6,500
lbs.
Actual price paid for materials…………………………………………….$3.80 per
lb.
HINT: Make a “goalpost” like we did in class to answer the
following questions. Make sure to indicate if your variance is
favorable or unfavorable.
a. What...
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what...
Russell and Sons, a CPA firm, established the following standard
labor cost data for completing what the firm referred to as a Class
2 tax return. Russell expected each Class 2 return to require 4.0
hours of labor at a cost of $30 per hour. The firm actually
completed 600 returns. Actual labor hours averaged 3.6 hours per
return and actual labor cost amounted to $34.50 per hour. Required
Determine the total labor variance and indicate whether it is
favorable...
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what...
Russell and Sons, a CPA firm, established the following standard
labor cost data for completing what the firm referred to as a Class
2 tax return. Russell expected each Class 2 return to require 4.6
hours of labor at a cost of $53 per hour. The firm actually
completed 600 returns. Actual labor hours averaged 4.3 hours per
return and actual labor cost amounted to $61 per hour.
Required
Determine the total labor variance and indicate whether it is
favorable...
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