Question
Cherokee Manufacturing Company established the following standard price and cost data: Sales price $ 12.00 per unit Variable manufacturing cost $ 7.20 per unit Fixed
Cherokee Manufacturing Company established the following standard price and cost data:
| Sales price | $ | 12.00 | per unit |
| Variable manufacturing cost | $ | 7.20 | per unit |
| Fixed manufacturing cost | $ | 3,600 | total |
| Fixed selling and administrative cost | $ | 1,200 | total |
Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Required
A/ Prepare the pro forma income statement in contribution format that would appear in a master budget.
B/Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
