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Please help :) Odessa, Inc., reports the following information concerning operations for the most recent month: Master Budget (based on Actual (based on budgeted 500
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Odessa, Inc., reports the following information concerning operations for the most recent month: Master Budget (based on Actual (based on budgeted 500 actual of 450 units) units) Sales revenue $77,320 $85,000 Less Manufacturing costs Direct labor 11,232 12,000 Materials 9,020 11,000 Variable overhead 5,750 7,500 Marketing 4,024 4,700 Administrative 4,000 4,000 Total variable costs $34,026 $39,200 Contribution margin $43,294 $45,800 Fixed costs Manufacturing 3,860 4,000 Marketing 8,382 8,000 Administrative 7,964 8,000 Total fixed costs $20,206 $20,000 Operating profits $23,088 $25,800 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 450 Units) Manufacturing Variance Marketing and Administrative Variance Sales Price Variance Flexible Budget (Units) Sales Activity Variance Master Budget (500 Units) $ 85,000 Sales revenue $ 77,320 Variable costs: Manufacturing Direct labor 11,232 12,000 Materials 9,020 11,000 Overhead 5,750 4,024 Marketing Administrative 7,500 4,700 4,000 45,800 4,000 Contribution margin $ 43,294 $ Fixed costs: 3,860 $ Manufacturing Marketing Administrative 4,000 8,000 8,382 7,964 8,000 Operating profit $ 23,088 $ 25,800Step by Step Solution
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