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Osage, Inc., manufactures and lamps. 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 Actual (based on actual orders for 450,000 units) $4,967,000 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 653,800 175,000 137,500 $ 966,300 $1,069,100 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 1,680,000 312,000 480,000 480,000 $2,952,000 $1,848,000 625,000 175,000 112,500 $912,500 $935,500 Required: Prepare a sales activity variance analysis for Osage, Inc. (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.)

Osage, Inc., manufactures and lamps. 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 Actual (based on actual orders for 450,000 units) $4,967,000 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 653,800 175,000 137,500 $ 966,300 $1,069,100 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 1,680,000 312,000 480,000 480,000 $2,952,000 $1,848,000 625,000 175,000 112,500 $912,500 $935,500 Required: Prepare a sales activity variance analysis for Osage, Inc. (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.)

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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Osage, Inc., manufactures and sells lamps. 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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on actual orders for 450,000 units) $4,967,000 $ $ $ $ 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 OSAGE, INC. Sales Activity Variance Flexible Budget 653,800 175,000 137,500 $ 966,300 $1,069,100 Required: Prepare a sales activity variance analysis for Osage, Inc. (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.) 0 0 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 0 0 1,680,000 312,000 480,000 480,000 Sales Activity Variance $2,952,000 $1,848,000 $ $ 625,000 175,000 112,500 912,500 935,500 Master Budget $ $ $ $ 0 0 0 0
Transcribed Image Text:Osage, Inc., manufactures and sells lamps. 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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on actual orders for 450,000 units) $4,967,000 $ $ $ $ 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 OSAGE, INC. Sales Activity Variance Flexible Budget 653,800 175,000 137,500 $ 966,300 $1,069,100 Required: Prepare a sales activity variance analysis for Osage, Inc. (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.) 0 0 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 0 0 1,680,000 312,000 480,000 480,000 Sales Activity Variance $2,952,000 $1,848,000 $ $ 625,000 175,000 112,500 912,500 935,500 Master Budget $ $ $ $ 0 0 0 0
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