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Scenario: Oak Grove, Inc., reports the following information concerning operations for the most recent month. There are no inventories. Actual (based on actual of 1080
Scenario: | ||||
Oak Grove, Inc., reports the following information concerning operations for the most recent month. There are no inventories. | ||||
Actual (based on actual of 1080 units) | Master Budget (based on budgeted 1,200 units) | |||
Sales revenue | $176,640 | $192,000 | ||
Less manufacturing costs | ||||
Direct labor | 27,264 | 28,800 | ||
Materials | 23,040 | 26,880 | ||
Variable overhead | 15,744 | 19,200 | ||
Marketing | 10,076 | 11,520 | ||
Administrative | 9,600 | 9,600 | ||
Total variable costs | $85,824 | $96,000 | ||
Contribution margin | $90,816 | $96,000 | ||
Fixed costs | ||||
Manufacturing | 9,380 | 9,600 | ||
Marketing | 19,968 | 19,200 | ||
Administrative | 19,122 | 19,200 | ||
Total fixed costs | $ 48,420 | $48,000 | ||
Operating profits | $ 42,396 | $48,000 | ||
REQUIRED | ||||
Prepare a flexible budget for Oak Grove, Inc. |
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