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E15-5 Sexton Manufacturing 2850

Price: $1.99


E15-5 Use the standard price and cost data provided in Exercise 15-3. Assume that the actual sales
price is $7.65 per unit and that the actual variable cost is $4.25 per unit. The actual fixed
manufacturing cost is $2,850, and the actual selling and administrative expenses are $1,025.

Required
a. Determine the flexible budget variances.
b. Classify the variances as favorable (F) or unfavorable (U).
c. Provide another name for the fixed cost flexible budget variance.
d. Comment on the usefulness of the variances with respect to performance evaluation and
identify the member(s) of the management team who is (are) most likely to be responsible
for these variances.

Info from E15-3
Sales price $8.00 per unit 
Variable manufacturing cost 4.00 per unit 
Fixed manufacturing costs 3,000 total 
Fixed selling and administrative costs 1,000 total 

Sexton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.

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