Engle Manufacturing Company established the following standardprice and costinformation:sales price$50 per unit...Engle Manufacturing Company...

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Accounting

Engle Manufacturing Company established the following standardprice and cost
information:
sales price $50 per unit
variable Manufacturing cost 32 per unit
fixed manufacturing cost $100,000 total
fixed selling and administrative cost $40,000 tota
Engle expected
to produce and sell 15,000 units. Actual production and salesamounted to 16,000 units.
Required:
(a) Determine the sales volume variances, including variances fornumber of units, sales
revenue, variable manufacturing cost, fixed manufacturing cost, andfixed selling and
administrative cost.
(b) Classify the variances as favorable (F) or unfavorable(U).
(c) Comment on the usefulness of the variances with respect toperformance evaluation.
(d) Explain why the fixed cost variances are zero.

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Eagle Manufacturing Company Sales Price Unit 50 Variable Manufacturing Unit 32 Fixed manufacturing cost 100000 Fixed selling and Administrative cost 40000 Epected and Produced Units 15000 Actual production See Answer

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In: AccountingEngle Manufacturing Company established the following standardprice and costinformation:sales price$50 per unit...Engle Manufacturing Company established the following standardprice and costinformation:sales price$50 per unitvariable Manufacturing cost32 per unitfixed manufacturing cost$100,000 totalfixed selling and administrative cost$40,000 totaEngle expectedto produce and sell 15,000 units. Actual production and salesamounted to 16,000 units.Required:(a) Determine the sales volume variances, including variances fornumber of units, salesrevenue, variable manufacturing cost, fixed manufacturing cost, andfixed selling andadministrative cost.(b) Classify the variances as favorable (F) or unfavorable(U).(c) Comment on the usefulness of the variances with respect toperformance evaluation.(d) Explain why the fixed cost variances are zero.

sales price	$50 per unit
variable Manufacturing cost	32 per unit
fixed manufacturing cost	$100,000 total
fixed selling and administrative cost	$40,000 tota