Nottingham Forest Products reports the following information concerning operations for the most recent month: ...
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Accounting
Nottingham Forest Products reports the following information concerning operations for the most recent month:
| Actual (based on actual sales of 5,340 units) | Master Budget (based on budgeted sales of 4,450 units) | |
|---|---|---|
| Sales revenue | $ 255,700 | $ 209,150 |
| Less | ||
| Manufacturing costs | ||
| Direct labor | 50,482 | 39,180 |
| Materials | 31,700 | 27,380 |
| Variable overhead | 16,788 | 13,280 |
| Marketing | 7,985 | 6,380 |
| Administrative | 7,395 | 6,680 |
| Total variable costs | $ 114,350 | $ 92,900 |
| Contribution margin | $ 141,350 | $ 116,250 |
| Fixed costs | ||
| Manufacturing | 39,200 | 37,580 |
| Marketing | 15,040 | 12,380 |
| Administrative | 9,780 | 10,580 |
| Total fixed costs | $ 64,020 | $ 60,540 |
| Operating profits | $ 77,330 | $ 55,710 |
There are no inventories.
Required:
Prepare a flexible budget for Nottingham Forest Products.
Note: Do not round intermediate calculations.
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