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 450,000 units) Master Budget (based on budgeted orders for 480,000 units)Sales revenue $4,975,000 $4,800,000 Less Variable costs Materials 1,536,000 1,536,000 Direct labor 245,000 312,000 Variable overhead 530,100 480,000 Variable marketing and administrative 445,500 456,000 Total variable costs $2,756,600 $2,784,000 Contribution margin $2,218,400 $2,016,000 Less Fixed costs Manufacturing overhead 883,100 855,000 Marketing 276,000 276,000 Administrative 199,000 175,000 Total fixed costs $1,358,100 $1,306,000 Operating profits $860,300 $710,000 Required:Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.) Actual (based onactual orders forMaster Budget (basedon budgeted ordersfor 480,000 units)$4,800,000450,000 units)$4,975,000Sales revenueLessVariable costs1,536,000245,000530,100445,500Materials1,536,000312,000480,000456,000Direct laborVariable overheadVariable marketing and administrativeTotal variable costsContribution margin$2,756,600$2, 218,400$2,784,000$2,016,000LessFixed costsManufacturing overheadMarketingAdministrative855,000883,100276,000199,000276,000175,000$1,306,000$ 710,000Total fixed costs$1,358,100Operating profits$4860,300 Required:Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)OSAGE, INC.Flexible BudgetSales reveVariable costs:nueMaterialsDirect laborVariable overheadVariable marketing and administrativeTotal variable costsContribution marginFixed costs:Manufacturing overheadMarketingAdministrativeTotal fixed costsOperating profit (loss)

Name: Osage, Inc., manufactures and sells lamps. The company produces only w
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 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 450,000 units) Master B

Flexible Budget: A flexible budget is a budget that is prepared for various levels of the output. •…

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 450,000 units) Master Budget (based on budgeted orders for 480,000 units) Sales revenue $ 4,975,000 $ 4,800,000 Less Variable costs Materials 1,536,000 1,536,000 Direct labor 245,000 312,000 Variable overhead 530,100 480,000 Variable marketing and administrative 445,500 456,000 Total variable costs $ 2,756,600 $ 2,784,000 Contribution margin $ 2,218,400 $ 2,016,000 Less Fixed costs Manufacturing overhead 883,100 855,000 Marketing 276,000 276,000 Administrative 199,000 175,000 Total fixed costs $ 1,358,100 $ 1,306,000 Operating profits $ 860,300 $ 710,000 Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

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 450,000 units)		Master Budget (based on budgeted orders for 480,000 units)
Sales revenue		$	4,975,000	$	4,800,000
Less
Variable costs
Materials			1,536,000		1,536,000
Direct labor			245,000		312,000
Variable overhead			530,100		480,000
Variable marketing and administrative			445,500		456,000
Total variable costs		$	2,756,600	$	2,784,000
Contribution margin		$	2,218,400	$	2,016,000
Less
Fixed costs
Manufacturing overhead			883,100		855,000
Marketing			276,000		276,000
Administrative			199,000		175,000
Total fixed costs		$	1,358,100	$	1,306,000
Operating profits		$	860,300	$	710,000

Required:

Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)

Actual (based on
actual orders for
Master Budget (based
on budgeted orders
for 480,000 units)
$4,800,000
450,000 units)
$4,975,000
Sales revenue
Less
Variable costs
1,536,000
245,000
530,100
445,500
Materials
1,536,000
312,000
480,000
456,000
Direct labor
Variable overhead
Variable marketing and administrative
Total variable costs
Contribution margin
$2,756,600
$2, 218,400
$2,784,000
$2,016,000
Less
Fixed costs
Manufacturing overhead
Marketing
Administrative
855,000
883,100
276,000
199,000
276,000
175,000
$1,306,000
$ 710,000
Total fixed costs
$1,358,100
Operating profits
$4
860,300

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.