Question
Problem 16-54 Sales Activity Variance (LO 16-3) The results for July for Brahms & Sons follow: Actual (based on actual sales of 55,000 units) Master
Problem 16-54 Sales Activity Variance (LO 16-3) The results for July for Brahms & Sons follow: Actual (based on actual sales of 55,000 units) Master Budget (based on budgeted sales 50,000 units) Sales revenue $ 465,000 $ 575,000 Less Variable costs Direct material 60,300 63,000 Direct labor 56,100 79,000 Variable overhead 64,900 79,000 Marketing 21,900 35,000 Administrative 20,300 35,000 Total variable costs $ 223,500 $ 291,000 Contribution margin $ 241,500 $ 284,000 Less Fixed costs Manufacturing 103,900 103,000 Marketing 24,300 35,000 Administrative 82,700 95,000 Total fixed costs $ 210,900 $ 233,000 Operating profits $ 30,600 $ 51,000 Required: Prepare a sales activity variance analysis for Brahms & Sons. (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.)
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