Problem 16-53 Prepare Flexible Budget (LO 16-2)

The results for July for Brahms & Sons follow:

	Actual (based on actual sales of 66,000 units)						Master Budget (based on budgeted sales of 60,000 units)
Sales revenues		$	488,000					$	500,000
Less
Variable costs
Direct material			60,600						50,000
Direct labor			51,800						61,000
Variable overhead			60,100						61,000
Marketing			23,500						23,000
Administration			22,000						23,000
Total variable costs		$	218,000					$	218,000
Contribution margin		$	270,000					$	282,000
Less
Fixed costs
Manufacturing			110,200						108,000
Marketing			26,800						24,000
Administration			91,600					$	90,000
Total fixed costs		$	228,600					$	222,000
Operating profits		$	41,400					$	60,000

Required:

Prepare a flexible budget for Brahms & Sons for July. (Do not round intermediate calculations.)

BRAHMS & SONS
Flexible Budget
Sales revenue
Variable costs:
Manufacturing costs
Direct material
Direct labor
Variable overhead
Marketing
Administration
Total variable costs	$0
Contribution margin	$0
Fixed costs:
Manufacturing
Marketing
Administration
Total fixed costs	$0
Operating profits	$0