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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 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 Operating profits There are no inventories. Required: Prepare a sales activity variance analysis for Nottingham Forest Products.

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 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 Operating profits There are no inventories. Required: Prepare a sales activity variance analysis for Nottingham Forest Products.

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. Sales revenue Variable costs: Manufacturing costs: Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administrative Total fixed costs Operating profits 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 Required: Prepare a sales activity 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. 38,930 14,860 9,510 $ 63,300 $ 51,950 46,800✔ 32,640 → 15,720 ✔ 7,440 7,800✔ $ 110,400 $ $ > Answer is complete but not entirely correct. NOTTINGHAM FOREST PRODUCTS Sales Activity Variance Flexible Master Budget Budget (based on actual of (based on budgeted 4,000 units) 4,800 units) $ 225,600 $ 225,600 F ✓ $ 188,000 39,000 27,200 13,100 110,400 6,200 6,500 $ 92,000 $ 96,000 115,200 $ 115,200 37,400✔ 12.200 10,400✔ 60,000 55,200 $ 55,200 37,400 12, 200 10,400 $ 60,000 $36,000 Sales Activity Variance 46,800 X U 32,640 X U 15,720 X U 7,440 X U 7,800 X U U F X 3333333 39,000 27,200 13,100 6,200 6,500 92,000 ✓ $ ✓$ 96,000 U X U X U X U X $ F ✓ $ 37,400 12,200 10,400 60,000 36,000
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. Sales revenue Variable costs: Manufacturing costs: Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administrative Total fixed costs Operating profits 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 Required: Prepare a sales activity 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. 38,930 14,860 9,510 $ 63,300 $ 51,950 46,800✔ 32,640 → 15,720 ✔ 7,440 7,800✔ $ 110,400 $ $ > Answer is complete but not entirely correct. NOTTINGHAM FOREST PRODUCTS Sales Activity Variance Flexible Master Budget Budget (based on actual of (based on budgeted 4,000 units) 4,800 units) $ 225,600 $ 225,600 F ✓ $ 188,000 39,000 27,200 13,100 110,400 6,200 6,500 $ 92,000 $ 96,000 115,200 $ 115,200 37,400✔ 12.200 10,400✔ 60,000 55,200 $ 55,200 37,400 12, 200 10,400 $ 60,000 $36,000 Sales Activity Variance 46,800 X U 32,640 X U 15,720 X U 7,440 X U 7,800 X U U F X 3333333 39,000 27,200 13,100 6,200 6,500 92,000 ✓ $ ✓$ 96,000 U X U X U X U X $ F ✓ $ 37,400 12,200 10,400 60,000 36,000
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