Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units

Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
See similar textbooks
icon
Related questions
Question
Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units
Transcribed Image Text:Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS