The following are the actual results for Bentler Associates for the most recent period: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 190,080 38,550 $ 595,050 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required A Required B 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below. Prepare a profit variance analysis. 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 as a whole number.

The following are the actual results for Bentler Associates for the most recent period: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 190,080 38,550 $ 595,050 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required A Required B 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below. Prepare a profit variance analysis. 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 as a whole number.

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

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...

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