Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and,...
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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 Master Budget (based actual orders for 450,000 units) on budgeted orders 480,000 units) $4,800,000 Sales revenue Less S4.972.000 Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,536,000 224,000 675,700 444,500 1,536,000 288,000 624,000 456,000 $2,904,000 S2,880,200 Total variable costs Contribution margin Less $2,091,80051,896,000 Fixed costs Manufacturing overhead Marketing Administrative 968,900 285,000 199,000 $1.452.900 S 638,900 940,000 285,000 175,000 Total fixed costs Operating profits $1,400,000 $496,000 Required Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.) OSAGE, INC. Flexible Budget Sales revenue Variable costs: Direct labor Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profit (loss)
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