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The results for July for Brahms & Sons follow: Actual (based on actual sales of 63,800 units) Master Budget (based on budgeted sales of 58,000
The results for July for Brahms & Sons follow:
Actual (based on actual sales of 63,800 units) | Master Budget (based on budgeted sales of 58,000 units) | ||||||||||
Sales revenues | $ | 458,000 | $ | 470,000 | |||||||
Less | |||||||||||
Variable costs | |||||||||||
Direct material | 57,900 | 47,000 | |||||||||
Direct labor | 53,900 | 63,000 | |||||||||
Variable overhead | 62,200 | 63,000 | |||||||||
Marketing | 22,450 | 22,000 | |||||||||
Administration | 20,550 | 22,000 | |||||||||
Total variable costs | $ | 217,000 | $ | 217,000 | |||||||
Contribution margin | $ | 241,000 | $ | 253,000 | |||||||
Less | |||||||||||
Fixed costs | |||||||||||
Manufacturing | 106,800 | 104,400 | |||||||||
Marketing | 26,000 | 23,200 | |||||||||
Administration | 82,700 | $ | 81,200 | ||||||||
Total fixed costs | $ | 215,500 | $ | 208,800 | |||||||
Operating profits | $ | 25,500 | $ | 44,200 | |||||||
Required:
Prepare a flexible budget for Brahms & Sons for July. (Do not round intermediate calculations.)
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