Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.60 Materials cost 9.00 Labor cost 3.80 Overhead cost 6.20 Selling, general, and administrative costs 6.80 Planned fixed costs Manufacturing overhead $ 131,000 Selling, general, and administrative 45,000Assume that Franklin actually produced and sold 33,000 books. The actual sales price and costs incurred follow: Actual price and variable costs
Sales price$35.60
Materials cost 8.40
Labor cost 4.40
Overhead cost 5.55
Selling, general, and administrative costs 6.50
Actual fixed costs
Manufacturing overhead$114,000
Selling, general, and administrative 51,000
Required:
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable