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The company planned to sell 66,400 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue.
The company planned to sell 66,400 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unlt at the budgeted volume You know that the company policy is to budget for an operating proft of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,400. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget. Note: 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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