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Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and,...

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Accounting

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 450,000 units) Master Budget (based on budgeted orders for 480,000 units)
Sales revenue $ 4,968,000 $ 4,800,000
Less
Variable costs
Materials 1,440,000 1,440,000
Direct labor 276,000 336,000
Variable overhead 674,400 624,000
Variable marketing and administrative 468,000 480,000
Total variable costs $ 2,858,400 $ 2,880,000
Contribution margin $ 2,109,600 $ 1,920,000
Less
Fixed costs
Manufacturing overhead 988,800 960,000
Marketing 288,000 288,000
Administrative 204,000 180,000
Total fixed costs $ 1,480,800 $ 1,428,000
Operating profits $ 628,800 $ 492,000

Required:

Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)

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