Osage, Inc., manufactures and sells lamps. The company produces only when itreceives orders and, therefore, has no inventories. The following information isavailable for the current month:Master Bu(based on buActual (based onactual ordersfor 450,000units)orders for 4units)Sales revenue$4,974,000$4,800,01LessVariable costsMaterials1,536,000244,000579,100420,000$2,779,100$2,194,9001,536,01312,00528,01432,00Direct laborVariable overheadVariable marketing and administrativeTotal variable costsContribution margin$2,808,00$1,992,00LessFixed costs883,100289,000197,000$1,369,100$ 825,800Manufacturing overheadMarketing855,01289,00176,00$1,320,00$ 672,00AdministrativeTotal fixed costsOperating profitsRequired:Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)OSAGE, INC.Flexible BudgetSales revenueVariable costs:MaterialsDirect laborVariable overheadVariable marketing and administrativeTotal variable costsContribution marginFixed costs:Manufacturing overheadMarketingAdministrativeTotal fixed costs$Operating profit (loss)$

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: Actual (based on Master Bu (based on bu actual orders for 450,000 units) orders for 4 units) Sales revenue $4,974,000 $4,800,00 Less Variable costs Materials 1,536,000 244,000 579,100 1,536,01 312,00 528,01 432,00 $2,808,01 $1,992,01 Direct labor Variable overhead 420,000 $2,779,100 $2,194,900 Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing 883,100 289,000 197,000 $1,369,100 $ 825,800 855,01 289,01 176,01 $1,320,01 $ 672,00 Administrative Total fixed costs Operating profits

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: Actual (based on Master Bu (based on bu actual orders for 450,000 units) orders for 4 units) Sales revenue $4,974,000 $4,800,00 Less Variable costs Materials 1,536,000 244,000 579,100 1,536,01 312,00 528,01 432,00 $2,808,01 $1,992,01 Direct labor Variable overhead 420,000 $2,779,100 $2,194,900 Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing 883,100 289,000 197,000 $1,369,100 $ 825,800 855,01 289,01 176,01 $1,320,01 $ 672,00 Administrative Total fixed costs Operating profits

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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