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: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 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. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000
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: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 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. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Actual (based on
actual orders for
411,600 units)
$ 7,820,400
Master Budget
(based on
budgeted orders
for 367,500
units)
$7,350,000
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
Required:
Prepare a profit variance analysis for Fournier Fixtures
2,640,600
237,000
1,213,600
874,000
$ 4,965,200
$2,855,200
2,345,000
217,000
1,078,000
784,000
$ 4,424,000
$ 2,926,000
1,623,000
546,400
363,000
$ 2,532,400
1,650,000
530,000
395,000
$2,575,000
$ 351,000
$ 322,800
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.
Sales revenue
Variable costs:
Actual
Manufacturing
Variances
S
7,820,400
Fournier Fixtures
Profit Variance Analysis
Marketing and
Administrative
Variances
Sales Price Variance
Flexible
Budget
Sales Activity Variance
U
Materials
2,640,600
Direct labor
237,000
Variable overhead
1,213,600
2
2
Variable marketing and administrative
874,000
Խ
Total variable costs
$
4,965,200
F
$
0
Խ
Contribution margin
$
2,855,200
Խ
2
$
0
Fixed costs:
Marketing
Manufacturing overhead
Administrative
Total fixed costs
1,623,000
2
546,400
363,000
5
2,532,400
Operating profits
S
322,800
2
$
0
$
0
Master
Budget
$ 7,350,000
2,345,000
217,000
1,078,000
784,000
$ 4,424,000
$ 2,926,000
1,650,000
530,000
305,000
$2,575,000
$ 351,000
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