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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on actual orders for 445,200 units) $ 8,458,800 Fournier Fixtures Sales Activity Variance Flexible Budget 2,710,200 249,000 1,271,200 898,000 $ 5,128,400 $ 3,330,400 1,731,000 668,800 471,000 $ 2,870,800 $ 459,600 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Master Budget (based on budgeted orders for 397,500 Sales Activity Variance units) $ 7,950,000 2,405,000 229,000 1,126,000 808,000 $ 4,568,000 $ 3,382,000 1,770,000 650,000 515,000 $ 2,935,000 $ 447,000 Master Budget
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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on actual orders for 445,200 units) $ 8,458,800 Fournier Fixtures Sales Activity Variance Flexible Budget 2,710,200 249,000 1,271,200 898,000 $ 5,128,400 $ 3,330,400 1,731,000 668,800 471,000 $ 2,870,800 $ 459,600 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Master Budget (based on budgeted orders for 397,500 Sales Activity Variance units) $ 7,950,000 2,405,000 229,000 1,126,000 808,000 $ 4,568,000 $ 3,382,000 1,770,000 650,000 515,000 $ 2,935,000 $ 447,000 Master Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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
Sales revenue
Variable costs:
Materials
Direct labor
Variable overhead
Variable marketing and administrative
Total variable costs
Contribution margin
Fixed costs:
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profits
Actual (based on
actual orders for
445,200 units)
$ 8,458,800
Fournier Fixtures
Sales Activity Variance
Flexible Budget
2,710,200
249,000
1,271,200
898,000
$ 5,128,400
$ 3,330,400
1,731,000
668,800
471,000
$ 2,870,800
$ 459,600
Required:
Prepare a sales activity variance analysis for Fournier Fixtures.
Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
Master Budget
(based on
budgeted orders
for 397,500
Sales Activity
Variance
units)
$ 7,950,000
2,405,000
229,000
1,126,000
808,000
$ 4,568,000
$ 3,382,000
1,770,000
650,000
515,000
$ 2,935,000
$ 447,000
Master Budget
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