Problem - Standard price and variable costs:

Sales price $37.00

Materials 8.70

Labor 4.30

Overhead 6.10

General, selling, and administrative 6.50

Planned fixed costs:

Manufacturing $128,000

General, selling, and administrative $49,000

Using the above standard price and data supplied above. Assume that Holligan actually produced and sold 31,000 books. The actual sales price and incurred follow:

Actual price and variable costs:

Sales price $36.00

Materials 9.10

Labor 4.10

Overhead 6.20

General, selling, and administrative 6.10

Actual fixed costs:

Manufacturing $120,000

General, selling, and administrative 55,000

a. Determine the flexible budget variances. Provide another name for the fixed cost flexible budget variance.

b. Indicate whether each variance is favorable (f) or unfavorable (U).

c. Identify the management position responsible for each variance. Explain what could have caused the variance.