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The results for July for Brahms & Sons follow: Actual (based on actual sales of 62,400 units) Master Budget (based on budgeted sales of 52,000
The results for July for Brahms & Sons follow:
Actual (based on actual sales of 62,400 units) | Master Budget (based on budgeted sales of 52,000 units) | ||||||||||
Sales revenues | $ | 450,000 | $ | 460,000 | |||||||
Less | |||||||||||
Variable costs | |||||||||||
Direct material | 56,800 | 46,000 | |||||||||
Direct labor | 45,900 | 55,000 | |||||||||
Variable overhead | 54,350 | 55,000 | |||||||||
Marketing | 20,450 | 20,000 | |||||||||
Administration | 18,500 | 20,000 | |||||||||
Total variable costs | $ | 196,000 | $ | 196,000 | |||||||
Contribution margin | $ | 254,000 | $ | 264,000 | |||||||
Less | |||||||||||
Fixed costs | |||||||||||
Manufacturing | 90,600 | 88,400 | |||||||||
Marketing | 23,800 | 20,800 | |||||||||
Administration | 79,400 | $ | 78,000 | ||||||||
Total fixed costs | $ | 193,800 | $ | 187,200 | |||||||
Operating profits | $ | 60,200 | $ | 76,800 | |||||||
Required:
Prepare a flexible budget for Brahms & Sons for July.
BRAHMS&SONS Flexible Budget Sales revenue Variable costs: Manufacturing costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administration Total fixed costs Operating profits
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