Munoz Manufacturing Company established the following standard price and cost data.Sales price$ 8.70per unitVariable manufacturing cost$ 3.80per unitFixed manufacturing cost$ 2,600totalFixed selling and administrative cost$ 800totalMunoz planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units.RequiredaPrepare the pro forma income statement in contribution format that would appear in a master budget.bPrepare the pro forma income statement in contribution format that would appear in a flexible budget.

Munoz Manufacturing Company established the following standard price and cost data.Sales price$ 8.70per unitVariable manufacturing cost$ 3.80per unitFixed manufacturing cost$ 2,600totalFixed selling and administrative cost$ 800totalMunoz planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units.RequiredaPrepare the pro forma income statement in contribution format that would appear in a master budget.bPrepare the pro forma income statement in contribution format that would appear in a flexible budget.

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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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

Munoz Manufacturing Company established the following standard price and cost data.Sales price$ 8.70per unitVariable manufacturing cost$ 3.80per unitFixed
manufacturing cost$ 2,600totalFixed selling and administrative cost$ 800totalMunoz planned to produce and sell 2, 300 units. Actual production and sales amounted to
2,500 units.RequiredaPrepare the pro forma income statement in contribution format that would appear in a master budget.bPrepare the pro forma income statement
in contribution format that would appear in a flexible budget.

MUNOZ MANUFACTURING COMPANY
Pro Forma Income Statement
Master Budget
2,300 Units
0
$
69
0

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