Question
The following information is provided concerning the operations of Tolstoy Corporation for the current period: Prepare a sales activity and a static/flexible budget for Tolstoy
The following information is provided concerning the operations of Tolstoy Corporation for the current period:
Prepare a sales activity and a static/flexible budget for Tolstoy Corporation. (check figure: Flexible Budget profit = 12,000)-USE EXCELL SHOW ALL WORK
| Master | ||||
| Actual | Budget | |||
| Sales (units) | 360 | 400 | ||
| Sales Revenue | 55,200 | 60,000 | ||
| Manufacturing costs | ||||
| Direct labor | 8,520 | 9,000 | ||
| Materials | 7,200 | 8,400 | ||
| Variable Overhead | 4,920 | 6,000 | ||
| Marketing | 3,180 | 3,600 | ||
| Administrative | 3,000 | 3,000 | ||
| Total Variable Costs | 26,820 | 30,000 | ||
| Contribution Margin | 28,380 | 30,000 | ||
| Fixed Costs | ||||
| Manufacturing | 2,916 | 3,000 | ||
| Marketing | 6,240 | 6,000 | ||
| Administrative | 5,976 | 6,000 | ||
| Total Fixed Costs | 15,132 | 15,000 | ||
| Profit | 13,248 | 15,000 |
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
