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I am having issues with the Variances, please show all the steps so I know what I am doing wrong. Osage, Inc., manufactures and sells
I am having issues with the Variances, please show all the steps so I know what I am doing wrong.
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 actual orders for 450,eee units) $4,968, eee Master Budget (based on budgeted orders for 480, eee units) $4,800, eee 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 1,440, eee 276, eee 674,400 468, eee $2,858,480 $2,189,60 1,440, eee 336, eee 624, eee 480, eee $2,880, eee $1,920, eee 988,888 288, eee 284, eee $1,488,888 $ 628,888 960, eee 288, eee 180, eee $1,428,eee $ 492, eee Required: Prepare a profit varlance analysis for Osage, Inc. (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) OSAGE, INC. Profit Variance Analysis Marketing and Manufacturing Administrative Variances Variances Actual Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 4.968,000 S 468,000F S4,500,000 s 300,000 $ 4,800,000 1,440,000 $ S 276.000 674,400 90,000 39,000F 89,400U 1,440,000 336,000 624.000 1,350,000 315,000 585,000 450,000 $ 2,700,000S $ 1,800,000 $ S 90,000F 21,000F 39,000F 30.000 F 180,000F 120.00010 U $ Sales revenue Variable costs: : Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 468,000 2.858,400 2,109.600 U U 480,000 $ 2.880,000 $ 1,920,000 S U U F U 0 960,000 288,000 or 0 988,800 288,000 204.000 1,480,800 628,800 U 180,000 0 960,000 288,000 180,000 $ 1.428.000 $ 492.000 S U U 0 $ 1,428,000 S 372.000 $ U U S 120,000Step by Step Solution
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