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Nottingham Forest Products reports the following information concerning operations for the most recent month: Master Budget (based on Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits There are no inventories. Actual (based on actual sales budgeted sales. of 4,800 units) of 4,000 units) $ 228,700 $ 188,000 50,302 31,520 16,608 7,805 7,215 $113,450 $ 115,250 38,930 14,860 9,510 $63,300 $ 51,950 39,000 27,200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $ 36,000 Required: Prepare a profit variance analysis for Nottingham Forest Products. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U": unfavorable. If there is no effect, do not select either option.

Nottingham Forest Products reports the following information concerning operations for the most recent month: Master Budget (based on Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits There are no inventories. Actual (based on actual sales budgeted sales. of 4,800 units) of 4,000 units) $ 228,700 $ 188,000 50,302 31,520 16,608 7,805 7,215 $113,450 $ 115,250 38,930 14,860 9,510 $63,300 $ 51,950 39,000 27,200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $ 36,000 Required: Prepare a profit variance analysis for Nottingham Forest Products. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U": unfavorable. If there is no effect, do not select either option.

FINANCIAL ACCOUNTING
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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Nottingham Forest Products reports the following information concerning operations for the most recent month: Master Budget (based on budgeted sales. of 4,000 units) $ 188,000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing. Administrative Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits There are no inventories. Actual (based on actual sales of 4,800 units) $ 228,700 50,302 31,520 16,608 7,805 7,215 $113,450 $ 115,250 38,930 14,860 9,510 $63,300 $ 51,950 39,000 27,200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $36,000 Required: Prepare a profit variance analysis for Nottingham Forest Products. 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.
Transcribed Image Text:Nottingham Forest Products reports the following information concerning operations for the most recent month: Master Budget (based on budgeted sales. of 4,000 units) $ 188,000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing. Administrative Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits There are no inventories. Actual (based on actual sales of 4,800 units) $ 228,700 50,302 31,520 16,608 7,805 7,215 $113,450 $ 115,250 38,930 14,860 9,510 $63,300 $ 51,950 39,000 27,200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $36,000 Required: Prepare a profit variance analysis for Nottingham Forest Products. 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.
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 Manufacturing costs Direct labor Materials Overhead Marketing Administrative Contribution margin Fixed costs: Manufacturing Marketing Administrative Operating profit Actual (4,800 Units) $ $ 228,700 50,302 31,520 16,608 7,805 7,215 115,250 38,930 14,860 9,510 $ 51,950 Manufacturing Variance NOTTINGHAM FOREST PRODUCTS Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget (4,800 Master Budget Units) Sales Activity Variance (4,000 Units) $ 188,000 $ $ 0 0 $ 39,000 27,200 13,100 6,200 6,500 96,000 37,400 12,200 10,400 $ 36,000
Transcribed Image Text: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 Manufacturing costs Direct labor Materials Overhead Marketing Administrative Contribution margin Fixed costs: Manufacturing Marketing Administrative Operating profit Actual (4,800 Units) $ $ 228,700 50,302 31,520 16,608 7,805 7,215 115,250 38,930 14,860 9,510 $ 51,950 Manufacturing Variance NOTTINGHAM FOREST PRODUCTS Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget (4,800 Master Budget Units) Sales Activity Variance (4,000 Units) $ 188,000 $ $ 0 0 $ 39,000 27,200 13,100 6,200 6,500 96,000 37,400 12,200 10,400 $ 36,000
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