Refer to the information in Exercise 16-34. The following is the actual income statement (in thousands of

Question:

Refer to the information in Exercise 16-34. The following is the actual income statement (in thousands of dollars) for the year.

Sales revenue ................................$7,238
Less variable costs
Direct materials .................................748
Direct labor .....................................1,010
Variable overhead .............................930
Total variable costs ......................$2,688
Contribution margin ...................$4,550
Less fixed costs
Fixed manufacturing overhead ...1,050
Non-manufacturing costs ............1,230
Total fixed costs ..........................$2,280
Operating profit ..........................$2,270


Required
Prepare a profit variance analysis like the one in Exhibit 16.5.

н (1) (2) (3) (4) (5) Flexible Budget (bas ed on actual activity of 80,000 units) $ 800,000 (6) (7) Master Budget (base


Exercise 16-34

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Fundamentals of Cost Accounting

ISBN: 978-1259969478

6th edition

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

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