Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual Variances 7,873,600 Manufacturing Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances 2,646,400 $ 14,400 U 238,000 6,160 F 1,218,400 6,560 U 876,000 $ 4,320 F $ 4,978,800 Խ E 2,894,800 U 1,632,000 28,000 F 556,600 16,600 U 372,000 33,000 F 2,560,600 $ 28,000 F $ 16,400 F 1,660,000 540,000 405,000 $ 2,605,000 $ 334,200 F $ Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 8,288,000 $ 888,000 F $ 7,400,000 2,632,000 282,000 U 2,350,000 244,160 26,160 U 218,000 1,211,840 129,840 U 880,320 $ 4,968,320 s $ 3,319,680 $ 94,320 U 532,320 U 355,680 F 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 714,680 $ 355,680
Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual Variances 7,873,600 Manufacturing Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances 2,646,400 $ 14,400 U 238,000 6,160 F 1,218,400 6,560 U 876,000 $ 4,320 F $ 4,978,800 Խ E 2,894,800 U 1,632,000 28,000 F 556,600 16,600 U 372,000 33,000 F 2,560,600 $ 28,000 F $ 16,400 F 1,660,000 540,000 405,000 $ 2,605,000 $ 334,200 F $ Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 8,288,000 $ 888,000 F $ 7,400,000 2,632,000 282,000 U 2,350,000 244,160 26,160 U 218,000 1,211,840 129,840 U 880,320 $ 4,968,320 s $ 3,319,680 $ 94,320 U 532,320 U 355,680 F 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 714,680 $ 355,680
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
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 60P: Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to...
Related questions
Question
Transcribed Image Text:Sales revenue
Less
Variable costs
Materials
Direct labor
Variable overhead
Variable marketing and administrative
Total variable costs
Contribution margin
Less
Fixed costs
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profits
Required:
Prepare a profit variance analysis for Fournier Fixtures
actual orders for
414,400 units)
$ 7,873,600
for 370,000
units)
$ 7,400,000
2,646,400
238,000
1,218,400
876,000
$ 4,978,800
$ 2,894,800
1,632,000
556,600
372,000
$ 2,560,600
$ 334,200
2,350,000
218,000
1,082,000
786,000
$ 4,436,000
$ 2,964,000
1,660,000
540,000
405,000
$ 2,605,000
$ 359,000
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
Sales revenue
Variable costs:
Materials
Direct labor
Variable overhead
Variable marketing and administrative
Total variable costs
Contribution margin
Fixed costs:
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profits
Actual
Variances
7,873,600
Manufacturing
Fournier Fixtures
Profit Variance Analysis
Marketing and
Administrative
Variances
2,646,400
$
14,400 U
238,000
6,160 F
1,218,400
6,560 U
876,000
$
4,320 F
$
4,978,800
Խ
E
2,894,800
U
1,632,000
28,000 F
556,600
16,600 U
372,000
33,000 F
2,560,600 $
28,000 F
$
16,400 F
1,660,000
540,000
405,000
$ 2,605,000
$
334,200
F
$
Sales Price Variance
Flexible
Budget
Sales Activity Variance
Master
Budget
$ 8,288,000 $
888,000 F
$ 7,400,000
2,632,000
282,000 U
2,350,000
244,160
26,160 U
218,000
1,211,840
129,840 U
880,320
$ 4,968,320 s
$ 3,319,680 $
94,320 U
532,320 U
355,680 F
1,082,000
786,000
$ 4,436,000
$2,964,000
1,660,000
540,000
405,000
$ 2,605,000
$ 359,000
714,680 $ 355,680
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