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The following are the actual results for Bentler Associates for the most recent period: Sales volume Sales revenue 63,360 units $ 823,680 Variable costs
The following are the actual results for Bentler Associates for the most recent period: Sales volume Sales revenue 63,360 units $ 823,680 Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative 190,080 38,550 $ 595,050 371,500 103,450 Operating profit $ 120,100 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 72,000 units. Management notes, We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a profit variance analysis. 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 as a whole number. Required A Required B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 $ 0 units Required A Required B Prepare a profit variance analysis. 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 ei as a whole number. Sales revenue BENTLER ASSOCIATES Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 823,680 Variable costs: Manufacturing 190,080 Marketing and administrative 38,550 Contribution margin $ 595,050 Fixed costs: Manufacturing 371,500 Marketing and administrative 103,450 Operating profit $ 120,100 < Required A Required B >
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