$10$ Homework Chapter $16($i$)$

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Golden Food Products produces special$-$formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell $198,000$ cases at a budgeted price of $$60$ per case this year. The standard direct cost sheet for one case of pet food follows:

Direct materials

$(3$ pounds @ $$2)$ $$6$

$(0\mathrm{.}25$ hours @$$32),8$

Variable overhead is applied based on direct labor$-$hours. The variable overhead rate is $$16$ per direct labor$-$hour. The fixed overhead rate $($at the master budget level of activity$)$ is $$10$ per unit. All nonmanufacturing costs are fixed and are budgeted at $$2\mathrm{.}2$ million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $$336,000$ favorable.

The following is the actual income statement $($in thousands of dollars$)$ for the year for Golden Food Products:

$\backslash$table$[[$Sales revenue,$$14,300$