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Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Fanning Publications established the following standard price and costs for a hardcover picture book that the company produces. a $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selline, general, and administrative 36.60 8.3e 3.80 6.00 6.60 $135,000 47,000 V Fanning planned to make and sell 39,000 copies of the book. Required: 2.-d. Prepare the proforma Income statement that would appear in the master budget and also flexible budget Income statements. assuming production volumes of 38.000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Volume Variances Master Budget 39,000 $ 1427 400 Flexible Budgets 38,000 40,000 Number of units Sales revenue Variable manufacturing costs Materials L. Prey 1 of 3 Next > Fanning planned to make and sell 39,000 copies of the book Required: ... d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget Income statements, assuming production volumes of 38,000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U) (Select "None" if there is no effect (.e.. zero variance).) 1 Volume Variances Master Budget 39,000 S 1.427 400 Flexible Budgets 38 000 40,000 Number of unds Sales revenue Variable manufacturing costs Materials Labor Manufacturing overhead Variable selling general and administrative costs Contribution margin Fixed costs Manufacturing overhead Fixed selling general, and administrative costs Net income 1.427 400 0 0 S 1.427 400 0 S

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