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Determining sales and variable cost volume variances LO 8-3 Rundle Manufacturing Company established the following standard price and cost data
Determining sales and variable cost volume variances LO 8-3 Rundle Manufacturing Company established the following standard price and cost data. 35 Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.10 per unit $ 3.90 per unit $2,589 total $ 880 total eBook Hint Print References Rundle planned to produce and sell 2,000 units. Actual production and sales amounted to 2.300 units Required a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable (F) or unfavorable (U). d. Determine the amount of fixed cost that will appear in the flexible budget. e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity
Req A and B Reg D Req E Determine the sales and variable cost volume variances an "None" if there is no effect (i.e., zero variance).) Volume Variances Sales Variable manufacturing
Complete this question by entering your answers in th TRE WHERE Req A and B ReqD Reg E Determine the amount of fixed cost that will appear in the flexib Flexible Budget Fixed manufacturing cost Fixed selling and administrative costs
Complete this question by entering your answers in Req A and B Req D Req E Determine the fixed cost per unit based on planned activity a answers to 2 decimal places.) Master Budget Flexible Budget Fixed cost per unit
Expert Solution
1.
Sales volume variance = (Actual units - Budgeted units) * Budgeted selling price per unit
Sales volume variance = (2,300 - 2,000) * $8.10 = $2,430 Favorable
Variable manufacturing cost volume variance = (Actual units - Budgeted units) * Budgeted variable manufacturing cost per unit
Variable manufacturing cost volume variance = (2,300 - 2,000) * $3.90 = $1,170 Unfavorable
2.
Fixed manufacturing cost (Flexible budget) = $2,500
Fixed selling and administrative cost (Flexible budget) = $800
3.
Fixed cost per unit (Master budget) = ($2,500+800) / 2,000 = 1.65 per unit
Fixed cost per unit (Flexible budget) ($2,500+800) / 2,300 = 1.43 per unit
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