The results for July for Brahms & Sons follow: Required: Prepare a flexible budg

Question

The results for July for Brahms & Sons follow:

  

  

Required:

Prepare a flexible budget for Brahms & Sons for July.

Actual (based on actual sales of 62,400 units) Master Budget (based on budgeted sales of 52,000 units) Sales revenues $ 450,000 $ 460,000 Less Variable costs Direct material 56,800 46,000 Direct labor 45,900 55,000 Variable overhead 54,350 55,000 Marketing 20,450 20,000 Administration 18,500 20,000 Total variable costs $ 196,000 $ 196,000 Contribution margin $ 254,000 $ 264,000 Less Fixed costs Manufacturing 90,600 88,400 Marketing 23,800 20,800 Administration 79,400 $ 78,000 Total fixed costs $ 193,800 $ 187,200 Operating profits $ 60,200 $ 76,800 BRAHMS&SONS; Flexible Budget Sales revenue Variable costs: Manufacturing costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administration Total fixed costs Operating profits

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Flexible Budget Paticulars Amount Sales Revenues          552,000.00 Less Variable Costs Direct Material            55,200.00 Direct Labour            66,000.00 Variable overhead            66,000.00 Marketing            24,000.00 Administration            24,000.00 Total variable costs          235,200.00 Contribution margin          316,800.00 Less Fixed costs Manufacturing              88,400.00 Marketing            20,800.00 Administration            78,000.00 Total Fixed costs          187,200.00 Operating profits          129,600.00

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