Odessa, Inc., reports the following information concerning operations for the mo

Question

Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 630 units) $104,390 Master Budget (based on budgeted 700 units) $112.000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative 13,950 15,870 10,130 6.112 6,300 $ 52,362 14,700 17,850 11,900 6,790 6,300 Total variable costs Contribution margin $ 54,460 Fixed costs Manufacturing Marketing Administrative 4,450 10,086 9.365 4,600 9,700 9.400 $ 23,700 $ 30,760 Total fixed costs Operating profits $ 28,127 There are no inventories

Explanation / Answer

Sales revenue 100800 =112000/700*630 Variable costs: Manufacturing costs: Direct labor 13230 =14700/700*630 Materials 16065 =17850/700*630 Variable overhead 10710 =11900/700*630 Marketing 6111 =6790/700*630 Administrative 5670 =6300/700*630 Total Variable costs 51786 Contribution margin 49014 Fixed costs: Manufacturing 4600 Marketing 9700 Administrative 9400 Total Fixed costs 23700 Operating profits 25314

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