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Saturn Furniture Sales price: $18.00 per unit Variable manufacturing cost: $9.00 per unit Fixed manufacturing cost: $4,500 total Fixed selling and administrative cost: $1,200 total
- Saturn Furniture
- Sales price: $18.00 per unit
- Variable manufacturing cost: $9.00 per unit
- Fixed manufacturing cost: $4,500 total
- Fixed selling and administrative cost: $1,200 total
- Planned production and sales: 1,800 units
- Actual production and sales: 2,000 units
- Required:
- Prepare the pro forma income statement in contribution format for both the master and flexible budget.
- Discuss the impact of the variance on profitability.
- Sales price: $18.00 per unit
- Variable manufacturing cost: $9.00 per unit
- Fixed manufacturing cost: $4,500 total
- Fixed selling and administrative cost: $1,200 total
- Planned production and sales: 1,800 units
- Actual production and sales: 2,000 units
- Required:
- Prepare the pro forma income statement in contribution format for both the master and flexible budget.
- Discuss the impact of the variance on profitability.
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
3rd edition
978-0132890540
