60.1K

Verified Solution

Link Copied!

5 ts Benson Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost $8.50 per unit $ 3.90 per unit $ 2,900 total $ 900 total Fixed manufacturing cost Fixed selling and administrative cost Benson planned to produce and sell 2,100 units. Actual production and sales amounted to 2,300 units. Assume that the actual sales price is $8.20 per unit and that the actual variable cost is $4.20 per unit. The actual fixed manufacturing cost is $2,700, and the actual selling and administrative costs are $935. 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). Answer is complete but not entirely correct. Flexible Budget Variances Sales Variable manufacturing Contribution margin Fixed manufacturing Fixed selling and administrative cost Net income (loss) $ $ (690) U 690 U (930) (200) 35 (930) U F U U > >

Benson Manufacturing Company established the following standard price and cost data: Benson planned to produce and sell 2,100 units. Actual production and sales amounted to 2,300 units. Assume that the actual sales price is $8.20 per unit and that the actual variable cost is $4.20 per unit. The actual fixed manufacturing cost is $2,700, and the actual selling and administrative costs ore $935. 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)

Answer & Explanation Solved by verified expert

See Answer