Rundle Manufacturing Company established the following standard price and cost d
ID: 2437783 • Letter: R
Question
Rundle Manufacturing Company established the following standard price and cost data: 2 Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.10 per unit 3.40 per unit $2,289 total s 980 total Rundle planned to produce and sell 2,800 units. Actual production and sales amounted to 3.000 units. Required a. Determine the sales and variable cost volume variances. 2-5727 b. Classify the variances as favorable (F) or unfavorable (U) ook d. Determine the amount of fixed cost that will appear in the flexible budget e. Determine the fixed cost per unit besed on planned activity and the fixed cost per unit based on actual activity. Complete this question by entering your answers in the tabs below Req A and B Req D Req E Determine the sales and variable cost volume variances and classify the "None" if there is no effect (i.e., zero variance).) Volume Variances a. Sales b. Variable manufacturing Req A and B Req D >Explanation / Answer
Req a and b: Planned Activity: 2800 Actual activity: 3000 Std price 8.1 Std variable cost per unit 3.4 Sales Volume variance: Std price (Actual activity-Budgeted Activity) 8.10 (3000-2800) = 1620 Fav Variable cost Volume variance: Std variable cost per unit (Activity actual-Std activity) 3.40 ( 3000-2800) = 680 Unfav Req c: Fixed OH in Flexible budget: Fixed manufacturing cost 2200 Fixed Selling and admin cost 900 Total Fixed cost in flexible budget 3100 Reqd: Master Flexible Total Fixed Cost 3100 3100 Divide: Number of units 2800 3000 Fixed cost per unit 1.11 1.03
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