Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and,...
90.2K
Verified Solution
Link Copied!
Question
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.)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.