Acc202 Survey of Accounting: P15-19 Assume that Todhunter Publications

Acc202 Survey of Accounting

P15-19 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:
Sales price $35.00
Materials 9.20
Labor 4.40
Overhead 6.35
General, selling, and administrative 7.00
Planned fixed costs:
Manufacturing $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
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