70.2K

Verified Solution

Link Copied!

Check my Exercise 16-29 (Algo) Profit Variance Analysis (LO 16-4) Osage, Inc., manufactures and sells lamps. 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 orders for 452,000 units) $ 4,970,000 Master Budget (based on budgeted orders for 484,000 units) $ 4,840,000 1,450,000 278,000 674,600 472,000 1,452,000 338,800 629, 200 484,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits $ $ 2,874,600 2,095,400 $ $ 2,904,000 1,936,000 989, 200 290,000 206,000 1,485,200 610,200 960,200 290,000 180, 200 1,430,400 505,600 $ $ $ S $ $ Required: Prepare a profit variance analysis for Osage, Inc. (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.) OSAGE, INC. Profit Variance Analysis Manufacturing Marketing and Administrative Variances Variances Sal Actual Sales Price Variance Flexible Budget $ 4,970,000 Sales revenue Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 1,450,000 278.000 674,600 472,000 $ 2,874,600 $ 2,095,400 989,200 290,000 206,000 $ 1,485,200 $ 610,200 intermediate calculations. Indicate the effect of each variance by o effect, do not select either option.) OSAGE, INC. Profit Variance Analysis Marketing and facturing Administrative riances Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 4,840,000 1,452,000 338,800 629,200 484,000 $ 2,904,000 $ 1,936,000 960,200 290,000 180,200 $ 1,430,400 $ 505,600

Answer & Explanation Solved by verified expert

See Answer