The results for July for Brahms & Sons follow: Required: Prepare a sales activit

Question

The results for July for Brahms & Sons follow:  

Required:

Prepare a sales activity variance analysis for Brahms & Sons. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Actual (based on actual sales of 58,800 units) Master Budget (based on budgeted sales of 56,000 units) Sales revenue $ 462,000 $ 480,000 Less Variable costs Direct material 58,800 48,000 Direct labor 54,600 64,000 Variable overhead 63,400 64,000 Marketing 20,400 20,000 Administrative 18,800 20,000 Total variable costs $ 216,000 $ 216,000 Contribution margin $ 246,000 $ 264,000 Less Fixed costs Manufacturing 102,400 100,000 Marketing 22,800 20,000 Administrative 81,200 80,000 Total fixed costs $ 206,400 $ 200,000 Operating profits $ 39,600 $ 64,000

Explanation / Answer

flexible budgeted Variance Actual sale unit 58,800 56,000 Sales revenue 504000 480,000 24,000 F less Variable costs direct materials 50400 48,000 2,400 U direct labor 67200 64,000 3,200 U variable overhead 67200 64,000 3,200 U marketing 21000 20,000 1,000 U administrative 21000 20,000 1,000 U total variable costs 226800 216,000 10,800 U contribution margin 277200 264,000 13,200 F less Fixed costs manufacturing 100,000 100,000 0 N marketing 20,000 20,000 0 N administrative 80,000 80,000 0 N total fixed costs 200,000 200,000 0 N operating profits 77,200 64,000 13,200 F Flexible budget = cost/56000*58,800

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.