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Below the table shows the standard price and cost that ABC company established, and the...

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Accounting

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Below the table shows the standard price and cost that ABC company established, and the price and costs in actual results \begin{tabular}{|l|r|r|} \hline (per unit) & standard & \multicolumn{2}{|c|}{ actual } \\ \hline Sales price & 52 & 49 \\ \hline material cost & 10 & 10.66 \\ \hline labor cost & 12 & 11.9 \\ \hline overhead cost & 7 & 7.05 \\ \hline SG\&A & 8 & 7.92 \\ \hline \end{tabular} fixed costs (in total) \begin{tabular}{l|r|r|} \hline manufacturing o' & 150,000 & 140,000 \\ \hline sg\&a & 60,000 & 64,000 \\ \hline \end{tabular} units 25,000 units 26,000 units a. prepare pro forma income statement for ABC company's master budget and flexible budget. b. determine the flexible budget variances and indicate whether they are favorable and unfavorable c. identify two variances ABC company is most likely to analyze further. Explain why you choose the two. d. Each unit of product was expected to require 4 pounds of materials. The standard price of one pound was $2.5. Actual materials usage was 4.1 pounds per unit at an actual price of $2.6 per pound. Determine the materials price and usage variances

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