Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Master Budget (based on Actual (based on budgeted orders actual orders for for 350,000 392,000 units) $ 7,448,000 2,600,000 230,000 1,180,000 860,000 $ 4,870,000 $ 2,578,000 1,560,000 475,000 300,000 $2,335,000 $ 243,000 units) $7,000,000 2,310,000 210,000 1,050,000 770,000 $4,340,000 $ 2,660,000 1,580,000 460,000 325,000 $ 2,365,000 $ 295,000 Required: Prepare a profit variance analysis for Fournier Fixtures 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 either option.

Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Master Budget (based on Actual (based on budgeted orders actual orders for for 350,000 392,000 units) $ 7,448,000 2,600,000 230,000 1,180,000 860,000 $ 4,870,000 $ 2,578,000 1,560,000 475,000 300,000 $2,335,000 $ 243,000 units) $7,000,000 2,310,000 210,000 1,050,000 770,000 $4,340,000 $ 2,660,000 1,580,000 460,000 325,000 $ 2,365,000 $ 295,000 Required: Prepare a profit variance analysis for Fournier Fixtures 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 either option.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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