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 392,500 439,600 units) units) $ 8,352,400 $ 7,850,000 2,698,600 247,000 1,261,600 894,000 $ 5,101,200 $ 3,251,200 1,713,000 648,400 453,000 $ 2,814,400 $ 436,800 2,395,000 227,000 1,118,000 804,000 $ 4,544,000 $ 3,306,000 1,750,000 630,000 495,000 $ 2,875,000 $ 431,000

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: 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 392,500 439,600 units) units) $ 8,352,400 $ 7,850,000 2,698,600 247,000 1,261,600 894,000 $ 5,101,200 $ 3,251,200 1,713,000 648,400 453,000 $ 2,814,400 $ 436,800 2,395,000 227,000 1,118,000 804,000 $ 4,544,000 $ 3,306,000 1,750,000 630,000 495,000 $ 2,875,000 $ 431,000

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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