Vernon Publications established the following standard price and costs for a hardcover picture book that...
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Accounting
Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces.
Standard price and variable costs
Sales price
$
36.70
Materials cost
8.40
Labor cost
3.60
Overhead cost
6.30
Selling, general, and administrative costs
7.00
Planned fixed costs
Manufacturing overhead
$
127,000
Selling, general, and administrative
47,000
Assume that Vernon actually produced and sold 35,000 books. The actual sales price and costs incurred follow:
Actual price and variable costs
Sales price
$
35.70
Materials cost
8.60
Labor cost
3.50
Overhead cost
6.35
Selling, general, and administrative costs
6.80
Actual fixed costs
Manufacturing overhead
$
112,000
Selling, general, and administrative
53,000
Required
a. & b. Determine the flexible budget variances and also indicate 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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