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The results for March for Savery Parts follow: Actual (based on actual sales of 15,036 units) Master Budget (based on budgeted sales of 17,900 units)
The results for March for Savery Parts follow:
Actual (based on actual sales of 15,036 units) | Master Budget (based on budgeted sales of 17,900 units) | |
---|---|---|
Sales revenues | $ 287,865 | $ 325,780 |
Less | ||
Variable costs | ||
Direct material | 51,680 | 63,260 |
Direct labor | 44,262 | 52,460 |
Variable overhead | 34,263 | 41,360 |
Marketing | 12,364 | 13,260 |
Administration | 18,351 | 21,560 |
Total variable costs | $ 160,920 | $ 191,900 |
Contribution margin | $ 126,945 | $ 133,880 |
Less | ||
Fixed costs | ||
Manufacturing | 36,700 | 33,160 |
Marketing | 16,962 | 15,160 |
Administration | 24,746 | 27,160 |
Total fixed costs | $ 78,408 | $ 75,480 |
Operating profits | $ 48,537 | $ 58,400 |
Required:
Prepare a flexible budget for Savery Parts for March.
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
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