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  3. vernon publications established the following stan

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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