Problem 6-27 Part D

Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 158,700 board games. The budgeted income statement for the period is as follows.

During November, Barnes produced and sold 193,900 board games. Actual results for the month are as follows.

Sales Revenue Variable expenses Direct materials $634,800 238,050 Direct labor Variable overhead 539,580 Total variable expenses Contribution margin Fixed overhead 254,800 Fixed selling and administrative expenses 508,500 Total fixed expenses Operating income $2,539,200 1,412,430 1,126,770 763,300 $363,470