Determining and interpreting flexible budget variances
Use the standard price and cost data supplied in Problem above. Assume that Todhunter actually produced and sold 31,000 books. The actual sales price and costs incurred follow.
|
Actual price and variable costs: |
$35.00 |
|
Sales price |
9.20 |
|
Materials |
4.40 |
|
Labor |
6.35 |
|
Overhead |
7.00 |
|
General, seling, and administrative Cost: |
|
|
Planned fixed |
$120,000 |
|
General, selling, and administrative |
60,000 |
Required
a. Determine the flexible budget variances.
b. Indicate whether each variance is favorable (F) or (U).
c. Identify the management position responsible for each variance. Explain what could have caused the variance