Zachary Publications established the following standard price and costs for a hardcover picture book that the company produces.
Standard price and variable costs
Sales price
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Planned fixed costs
Manufacturing overhead
Selling, general, and administrative
$ 36.40
8.60
4.30
5.50
6.50
$129,000
44,000
Zachary planned to make and sell 34,000 copies of the book.
Required:
a. d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements,
assuming production volumes of 33,000 and 35,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 35,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" If there is no effect (l.e.,
zero variance).)
Number of units
Variable manufacturing costs
Fixed costs
Master Budget
34,000
Flexible Budgets
33,000
Volume Variances
35,000
0
0
0
$ 0 $ 0 $ 0
