Data-2-Go manufactures and sells flash drives. The company produces only when it
ID: 2483368 • Letter: D
Question
Data-2-Go manufactures and sells flash drives. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:
Prepare a flexible budget for Data-2-Go. (Do not round intermediate calculations.)
Data-2-Go manufactures and sells flash drives. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:
Actual(based on actual of
750,000 units) Master Budget
(based on budgeted
800,000 units) Sales revenue $ 3,105,000 $ 3,000,000 Less Variable costs Blank flash drives 900,000 900,000 Direct labor 172,500 210,000 Variable overhead 421,500 390,000 Variable marketing and administrative 292,500 300,000 Total variable costs $ 1,786,500 $ 1,800,000 Contribution margin $ 1,318,500 $ 1,200,000 Less Fixed costs Manufacturing overhead 618,000 600,000 Marketing 180,000 180,000 Administrative 127,500 112,500 Total fixed costs $ 925,500 $ 892,500 Operating profits $ 393,000 $ 307,500 Required:
Prepare a flexible budget for Data-2-Go. (Do not round intermediate calculations.)
Explanation / Answer
Calculation of variable cost per unit and sales revenue per unit based on master budget Particulars Total ($) Number of units Cost/unit ($) Sales revenue 3000000 800000 3.75 Variable costs: Blank flash drives 900000 800000 1.125 Blank flash drives 210000 800000 0.2625 Variable overhead 390000 800000 0.4875 Variable marketing and administrative 300000 800000 0.375 Flexible budget (750000 units) Particulars $ $ Sales @3.75 per unit 2812500 Variable cost: Blank flash drives @1.125 per unit 843750 Blank flash drives @ 0.2625 per unit 196875 Variable overhead @0.4875 per unit 365625 Variable marketing and administrative @ $0.375 per unit 281250 Total variable cost 1687500 Total contribution 1125000 Less: Fixed costs Manufacturing overhead 600000 Marketing 180000 Administrative 112500 Total Fixed costs 892500 Operating Profit 232500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.