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Accounting help!! Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is
Accounting help!!
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on Master Budget (based actual orders for on budgeted orders for 460,000 units) 500,000 units) Sales revenue $4,978,000 $5,000,000 Less Variable costs Materials 1,490,000 1,500,000 286,000 350,000 Direct labor 675,400 650,000 Variable overhead 488,000 500,000 Variable marketing and administrative Total variable costs $2,939,400 $3,000,000 S2098 600 S2000,000 Contribution margin Less Fixed costs 961,000 990,800 Manufacturing overhead 298,000 289,000 Marketing 214,000 181,000 Administrative Total fixed costs 535,800 569,000 Operating profitsStep by Step Solution
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