Stuart Manufacturing Company established the following standard price and cost d

Question

Stuart Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost 8.60 per unit $ 3.50 per unit $2,400 total $ 800 total Stuart planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 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. 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 variances as favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Volume Variances Sales Variable manufacturing

Explanation / Answer

a&b) Sales volume variance = (2300-2500)*8.60 = 1720 Favorable

Variable cost volume variance = (2300-2500)*3.50 = 700 Unfavorable

d) Fixed cost in flexible budget :

e) Fixed cost per unit :

Fixed manufacturing cost 2400 Fixed selling and administrative expense 800

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