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 actual orders for 457,000 units) Master Budget (based on budgeted orders for 494,000 units)Sales revenue $4,975,000 $4,940,000 Less Variable costs Materials 1,475,000 1,482,000 Direct labor 283,000 345,800 Variable overhead 675,100 642,200 Variable marketing and administrative 482,000 494,000 Total variable costs $2,915,100 $2,964,000 Contribution margin $2,059,900 $1,976,000 Less Fixed costs Manufacturing overhead 990,200 960,700 Marketing 295,000 295,000 Administrative 211,000 180,700 Total fixed costs $1,496,200 $1,436,400 Operating profits $563,700 $539,600 Required:Prepare a profit 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.) Fixed costsManufacturing overheadMarketingAdministrative990,200295,000211,000960,700295,000180,700$1,436,400Total fixed costs$1,496, 200$ 563,700Operating profits$ 539,600Required:Prepare a profit variance analysis for Osage, Inc. (Do not round intermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)OSAGE, INC.Profit Variance AnalysisManufacturingVariancesMarketing andAdministrativeVariancesFlexibleMasterActualSales Price VarianceBudgetSales Activity VarianceBudgetSales revenue$ 4,975,000$ 4,940,000Variable costs:Materials1,475,0001,482,000Direct labor283 000345,800642,200Variable overhead675, 100494,000Variable marketing and administrative482,000$ 2,964,000Total variable costs$2,915,100$ 1,976,000Contribution margin$ 2,059,900Fixed costs960,700Manufacturing overhead990,200295,000Marketing295,000180,700Administrative211,000$ 1,436,400Total fixed costs$ 1,496,200$539,600563,700Operating profits< Prev3 of 5Next >to search%24%24%24%24...%24

Budget refers to a list of estimates made about the expenditure and revenue to happen in a set…

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 actual orders for 457,000 units) Master Budget (based on budgeted orders for 494,000 units) Sales revenue $ 4,975,000 $ 4,940,000 Less Variable costs Materials 1,475,000 1,482,000 Direct labor 283,000 345,800 Variable overhead 675,100 642,200 Variable marketing and administrative 482,000 494,000 Total variable costs $ 2,915,100 $ 2,964,000 Contribution margin $ 2,059,900 $ 1,976,000 Less Fixed costs Manufacturing overhead 990,200 960,700 Marketing 295,000 295,000 Administrative 211,000 180,700 Total fixed costs $ 1,496,200 $ 1,436,400 Operating profits $ 563,700 $ 539,600 Required: Prepare a profit 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

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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:

	Actual (based on actual orders for 457,000 units)		Master Budget (based on budgeted orders for 494,000 units)
Sales revenue		$	4,975,000	$	4,940,000
Less
Variable costs
Materials			1,475,000		1,482,000
Direct labor			283,000		345,800
Variable overhead			675,100		642,200
Variable marketing and administrative			482,000		494,000
Total variable costs		$	2,915,100	$	2,964,000
Contribution margin		$	2,059,900	$	1,976,000
Less
Fixed costs
Manufacturing overhead			990,200		960,700
Marketing			295,000		295,000
Administrative			211,000		180,700
Total fixed costs		$	1,496,200	$	1,436,400
Operating profits		$	563,700	$	539,600

Required:

Prepare a profit 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.)

Fixed costs
Manufacturing overhead
Marketing
Administrative
990,200
295,000
211,000
960,700
295,000
180,700
$1,436,400
Total fixed costs
$1,496, 200
$ 563,700
Operating profits
$ 539,600
Required:
Prepare a profit 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.
Profit Variance Analysis
Manufacturing
Variances
Marketing and
Administrative
Variances
Flexible
Master
Actual
Sales Price Variance
Budget
Sales Activity Variance
Budget
Sales revenue
$ 4,975,000
$ 4,940,000
Variable costs:
Materials
1,475,000
1,482,000
Direct labor
283 000
345,800
642,200
Variable overhead
675, 100
494,000
Variable marketing and administrative
482,000
$ 2,964,000
Total variable costs
$2,915,100
$ 1,976,000
Contribution margin
$ 2,059,900
Fixed costs
960,700
Manufacturing overhead
990,200
295,000
Marketing
295,000
180,700
Administrative
211,000
$ 1,436,400
Total fixed costs
$ 1,496,200
$
539,600
563,700
Operating profits
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