Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 540 units) $94,400 Master Budget (based on

image text in transcribed

image text in transcribed

Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 540 units) $94,400 Master Budget (based on budgeted 600 units) $102,000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits 13,648 11,230 7,840 4.962 4.800 $42,480 $51.920 14,400 13.200 9,600 5,640 4.800 $ 47.640 $ 54.360 4,650 9,990 9.556 $24.196 $27,724 4,800 9,600 9,600 $ 24.000 $ 30,360 There are no inventories. Required: Prepare a profit variance analysis for Odessa, Inc. (Do not round intermediate calculations. 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.) ODESSA, INC. Profit Variance Analysis Actual 540 Units) Manufacturing Variance Marketing and Administrative Variance Sales Price Variance Flexible Budget (Units) Sales Activity Variance Master Budget (600 Units) $ 102,000 Sales revenue $ 94,400 Variable costs Manufacturing Direct labor 13,648 14,400 11.230 13,200 Materials Overhead 7,840 9.600 Marketing 4,962 5,640 Administrative 4,800 4,800 Contribution margin $ 51.920 $ 54,360 Fixed costs: Manufacturing 4,650 $ 4.800 9.990 9,600 Marketing Administrative Operating profit 9,556 9,600 $ 27,724 $ 30,360

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Data Processing Controls And Auditing

Authors: W.Thomas Porter

1st Edition

0534009336, 978-0534009335

More Books

Students also viewed these Accounting questions