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A new accounting intern at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period

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A new accounting intern at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period but needs the master budget to do so. Actual results for the period follow. 120,000 units $672,000 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 147,200 61,400 $463,400 205,eee 113,280 $145,200 The company planned to produce and sell 108,000 units for $5 each. At that volume, the contribution margin would have been $380.000. Variable marketing and administrative costs are budgeted at 10 percent of sales revenue. Manufacturing fixed costs are estimated at $2 per unit at the normal volume of 108,000 units, Management notes, "We budget an operating profit of $1 per unit at the normal volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. pare a profit variance analysis. (Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorab! er option. Enter your final answers as a whole number) Manufacturing Variance GIBSON CORPORATION Profit Variance Analysis Marketing and Sales Price Administrative Variance Variance $72,000F Actual Sales Activity Variance Master Budget Flexible Budget $ 600,000 $ 672 000 $ (60.000) F S 540.000 $ 29,4220 1 anufacturing arketing and administrative ribution margin 147,200 614001 463.400 s 1400 U 117.778 60,000 422,222 (11778) U ,000 S (42.222) 06,000 $4,000 380,000 $ 0 anufacturing arketing and administrative 205,000 113,200 145.200 216,000 56,000 150.2225 0 0 (42.222) F 216.000 55.000 108.000 $ P S ating profit S

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