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Safari File Edit View History Bookmarks Develop Window Help 736.00 MB0 *29% D Mon 4:41 PM QE ezto.mheducation.com # 1 Chapter 16 PeopleSoft sessi https:/ Chapter 16 Online Sports Be... Question 4 (of 5) Save & Exit | Submit value: 4.00 points Problem 16-54 Sales Activity Variance (LO 16-3) The results for July for Brahms & Sons follow: Actual (based on actual sales of 58,800 units) S462,000 Master Budget (based on b udgeted sales of 56,000 units) $480,000 Sales revenue Less Variable costs Direct material Direct labor Variable overhead Marketing Administrative 58,800 54,600 63,400 20,400 18,800 S216,000 S246,000 48,000 64,000 64,000 20,000 20,000 $216,000 Total variable costs Contribution margin Less Fixed costs 102,400 22,800 81,200 S206,400 S 39,600 100,000 20,000 80,000 Marketing Administrative Total fixed costs Operating profits 64,000 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.) R SONS

Explanation / Answer

Flexible

Budget (based on actual units)

58,800 units

$504,000

{(480,000/56000)×58800}

$24,000 F

$480,000

Variable costs:

Manufacturing costs:

$50,400

{(48000/56000)×58800}

$2,400 U

$48,000

$67,200

{(64000/56000)×58800}

$3,200 U

$64,000

$67,200

{(64000/56000)×58800}

$3,200 U

$64,000

$21,000

{(20000/56000)×58800}

$1000 U

$20,000

$21,000

{(20000/56000)×58800

$1000 U

$20,000

  

Flexible

Budget (based on actual units)

58,800 units

Sales activity variance master budget (based on budgeted 56,000 units) Sales revenue

$504,000

{(480,000/56000)×58800}

$24,000 F

$480,000

Variable costs:

Manufacturing costs:

Direct material

$50,400

{(48000/56000)×58800}

$2,400 U

$48,000

Direct labour

$67,200

{(64000/56000)×58800}

$3,200 U

$64,000

Variable overhead

$67,200

{(64000/56000)×58800}

$3,200 U

$64,000

Marketing

$21,000

{(20000/56000)×58800}

$1000 U

$20,000

Admission

$21,000

{(20000/56000)×58800

$1000 U

$20,000

Total variable costs $226,800 $10,800 U $216,000 Contribution margin $277,200 $13,200 F $264,000 Fixed Costs: Manufacturing $100,000 0 $100,000 Marketing $20,000 0 $20,000 Administration $80,000 0 $80,000 Total fixed costs $200,000 0 $200,000 Operating profits $77,200 $13,200 F $64,000

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