W E ation Star City Manufacturing Company established the following standard price and cost data: Cost Sales price Fixed manufacturing cost Standard Actual $18.00 per unit $17.64 per unit Variable manufacturing cost $9.00 per unit $8.63 per unit $4,860.00 total $4,050.00 total Fixed selling and administrative $1,980.00 total $2,029.50 total cost Star City planned to produce and sell 2,700 units. Actual production and sales amounted to 3,850 units. Required a. Determine the flexible budget variances. b. Classify the variances as favorable (F) or unfavorable (U).

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.