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Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Perez planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Assume that the actual sales price is $7.70 per unit and that the actual variable cost is $3.80 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $725. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales Variable manufacturing Contribution margin $ 8.10 per unit $ 3.50 per unit $ 2,600 total $ 700 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances

Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Perez planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Assume that the actual sales price is $7.70 per unit and that the actual variable cost is $3.80 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $725. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales Variable manufacturing Contribution margin $ 8.10 per unit $ 3.50 per unit $ 2,600 total $ 700 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1PB: Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a...
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Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Perez planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Assume that the actual sales price is $7.70 per unit and that the actual variable cost is $3.80 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $725. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales Variable manufacturing Contribution margin $ 8.10 per unit $ 3.50 per unit $ 2,600 total $ 700 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances
Transcribed Image Text:Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Perez planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Assume that the actual sales price is $7.70 per unit and that the actual variable cost is $3.80 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $725. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales Variable manufacturing Contribution margin $ 8.10 per unit $ 3.50 per unit $ 2,600 total $ 700 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances
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