Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Master Budget (based on Actual (based on budgeted orders actual orders for for 355,000 Prepare a sales activity variance analysis for Fournier Fixtures. 397,600 units) $ 7,554,400 2,611,600 232,000 1,189,600, 864,000+ $ 4,897,200 $ 2,657,200 units) $ 7,100,000 2,320,000 212,000 1,058,000 774,000 $ 4,364,000 $2,736,000 1,578,000 495,400 318,000 $ 2,391,400 1,600,000 480,000 345,000 $ 2,425,000 $ 311,000 $ 265,800 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for < Prev 4 of 10 www Next > APR 28 NA ABC Operating profits Required: $ 265,800 $311,000 Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Fournier Fixtures Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget $ 7,952,000 Materials Direct labor Variable overhead Variable marketing and administrative 2,598,400 237,440 1,184,960 866,880 + Total variable costs $ 4,887,680 Contribution margin $ 3,064,320 $ 0 $ 0 Fixed costs: Manufacturing overhead $ 1,600,000 Marketing 480,000 Administrative 345,000 Total fixed costs $ 2,425,000 $ 0 Operating profits $ 639,320 $ 0 Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Master Budget (based on Actual (based on budgeted orders actual orders for for 355,000 Prepare a sales activity variance analysis for Fournier Fixtures. 397,600 units) $ 7,554,400 2,611,600 232,000 1,189,600, 864,000+ $ 4,897,200 $ 2,657,200 units) $ 7,100,000 2,320,000 212,000 1,058,000 774,000 $ 4,364,000 $2,736,000 1,578,000 495,400 318,000 $ 2,391,400 1,600,000 480,000 345,000 $ 2,425,000 $ 311,000 $ 265,800 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for < Prev 4 of 10 www Next > APR 28 NA ABC Operating profits Required: $ 265,800 $311,000 Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Fournier Fixtures Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget $ 7,952,000 Materials Direct labor Variable overhead Variable marketing and administrative 2,598,400 237,440 1,184,960 866,880 + Total variable costs $ 4,887,680 Contribution margin $ 3,064,320 $ 0 $ 0 Fixed costs: Manufacturing overhead $ 1,600,000 Marketing 480,000 Administrative 345,000 Total fixed costs $ 2,425,000 $ 0 Operating profits $ 639,320 $ 0
Expert Answer:
Answer rating: 100% (QA)
To prepare a sales activity variance analysis for Fournier Fixtures we need to compare the actual sales revenue with the flexible budget and the maste... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Tiana and Alyssa share income equally. For the current year, the partnership remaining net income is $75,000 after accounting for salary allowances. Tiana made withdrawals of $23,000 and Alyssa made...
-
Part II Now that you have completed Activity 3 and revised it based on the feedback you have received from your instructor and peers, it is time to move on to the fourth activity of the course....
-
Which is NOT true about buying / selling Bitcoins on a centralized exchange (e.g. Coinbase)? You can get better prices than buying / selling on decentralized exchange You can find these transactions...
-
In Exercises 116, evaluate each algebraic expression for the given value or values of the variable(s). x 2 - 4(x - y), for x = 8 and y = 3
-
Use the Checkpoint State & Local Practice Area to answer the following questions: a. For the state of your choice, compare the listing of documents available under the option Select Document Types in...
-
Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication, the...
-
In expectancy theory, ____________ is the perceived value of a reward. (a) expectancy (b) instrumentality (c) motivation (d) valence
-
1 Introducing MPO Fentres Founded in 1970 in Alenon (Orne), the company MPO Fentres (Menuiserie Plastique de lOuest) was one of the first French companies in the PVC/carpentry sector to offer a...
-
Jenne also earns rental income from a property that she personal owns. The first tenant occupied the property from January until March 2021, with a rental income of RM13,000. The rental charged in...
-
Problem 17-07A (Video) The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets Assets Cash Accounts receivable Inventory Equipment December 31...
-
Traumatic brain injury such as concussion results when the head undergoes a very large acceleration. Generally, an acceleration less than 8 0 0 m / s 2 lasting for any length of time will not cause...
-
Consider a situation where N consumers interact with a monopolist in a market. Half of these consumers (y = 0.5) have low demand, 01 100 for the monopolist's product, while 150. Consumer i receives...
-
lim cos z-2 2 is -0
-
Python and Dash Framework Open the ModuleSixMilestone.ipynb file, which contains the starter code for the Grazioso Salvare dashboard. Upload this file into Apporto and open it using the Jupyter...
-
Explain what capital structure theory attempts to do and demonstrate useful lessons that can be learned from capital structure theory. Using the free cash flow valuation model, identify avenues by...
-
The state of a component in a machine is described by a discrete-time Markov chain with state space S {1,2,3} and 1-step transition matrix P = 0 = The machine contains 25 of these components which...
-
What are the four types of poultry production systems? Explain each type.
-
Hawk Skateboards is considering building a new plant. Robert Optimist, the company's marketing manager, is an enthusiastic supporter of the new plant. Roberta Wunder land, the company's chief...
-
Bolus Company is considering the purchase of a new machine. The invoice price of the machine is \($112,000\), freight charges are estimated to be \($3,000\), and installation costs are expected to be...
-
Lafluer Corp. is thinking about opening a soccer camp in southern California. In order to start the camp, the company would need to purchase land, and build four soccer fields and a dormitory-type...
Study smarter with the SolutionInn App