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Golden Food Products produces special - formula pet food. The company carries no inventories. The master budget calls for the Required: Prepare a profit variance
Golden Food Products produces specialformula pet food. The company carries no inventories. The master budget calls for the Required:
Prepare a profit variance analysis.
Note: Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting F for favorable, or U for
unfavorable. If there is no effect, do not select either option.
Answer is not complete.
company to manufacture and sell cases at a budgeted price of $ per case this year. The standard direct cost sheet for one
case of pet food follows:
Direct materials
pounds @ $ $
Direct labor
hours @ $
Variable overhead is applied based on direct laborhours. The variable overhead rate is $ per direct laborhour. The fixed overhead
rate at the master budget level of activity is $ per unit. All nonmanufacturing costs are fixed and are budgeted at $ million for the
coming year.
At the end of the year, the costs analyst reported that the sales activity variance for the year was $ favorable.
The following is the actual income statement in thousands of dollars for the year for Golden Food Products:
Required:
Prepare a profit variance analysis.
Note: Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting F for favorable, or U for
unfavorable. If there is no effect, do not select either option.
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