Question

Please help me fill out the volume variances!

Benson Publications established the following standard price and costs for a hardcover picture book that the company produces. $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.30 8.40 3.90 6.30 6.90 $133,000 47,000 Benson planned to make and sell 39,000 copies of the book. Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 38,000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Master Budget Volume Variances Number of units Sales revenue Variable manufacturing costs 39,000 1,415,700 Flexible Budgets 38,000 40,000 1,379,400 $ 1,452,000 $ $ Materials Labor 327,600 152,100 269,100 245,700 421,200 319,200 148,200 262,200 239,400 410,400 336,000 156,000 276,000 252,000 432,000 Variable selling general, and administrative costs Manufacturing overhead Contribution margin Fixed costs Manufacturing overhead Fixed selling, general, and administrative costs Net income None 133,000 47,000 241,200 133,000 47,000 230,400 133,000 47,000 252,000 None $ $ $ F

Answer 1

	Master Budget	Flexible Budgets		Volume Variances
Number of units	39000	38000	40000
Sales revenue	1415700	1379400	1452000	36300	F
Variable manufacturing costs
Materials	327600	319200	336000	8400	U
Labor	152100	148200	156000	3900	U
Variable selling, general, and administrative costs	269100	262200	276000	6900	U
Manufacturing overhead	245700	239400	252000	6300	U
Contribution margin	421200	410400	432000	10800	F
Fixed costs
Manufacturing overhead	133000	133000	133000	0	None
Fixed selling, general, and administrative costs	47000	47000	47000	0	None
Net income	241200	230400	252000	10800	F