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Swifty Entertainment Corporation prepared a master budget for the month of November that was based on sales of 187,300 board games. The budgeted income statement
Swifty Entertainment Corporation prepared a master budget for the month of November that was based on sales of 187,300 board games. The budgeted income statement for the period is as follows.
Sales Revenue | $3,184,100 | ||||
Variable expenses | |||||
Direct materials | $861,580 | ||||
Direct labor | 355,870 | ||||
Variable overhead | 486,980 | ||||
Total variable expenses | 1,704,430 | ||||
Contribution margin | 1,479,670 | ||||
Fixed overhead | 224,000 | ||||
Fixed selling and administrative expenses | 434,000 | ||||
Total fixed expenses | 658,000 | ||||
Operating income | $821,670 |
During November, Swifty produced and sold 153,000 board games. Actual results for the month are as follows.
Sales Revenue | $2,507,000 | ||||
Variable expenses | |||||
Direct materials | $690,800 | ||||
Direct labor | 276,200 | ||||
Variable overhead | 385,800 | ||||
Total variable expenses | 1,352,800 | ||||
Contribution margin | 1,154,200 | ||||
Fixed overhead | 211,000 | ||||
Fixed selling and administrative expenses | 449,000 | ||||
Total fixed expenses | 660,000 | ||||
Operating income | $494,200 |
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