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: Master Budget (based on budgeted orders for 480,000 units) Actual (based on actual orders for 450,000 units) Sales revenue $4,487,000 $4,320,000 Less Variable costs Materials 1,536,000 223,000 578,100 442,000 $2,779,100 $1,707,900 1,536,000 288,000 528,000 456,000 $2,808,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin $1,512,000 Less Fixed costs Manufacturing overhead Marketing Administrative 653,700 180,000 128,000 $961,700 625,000 180,000 105,000 $ 910,000 Total fixed costs

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: Master Budget (based on budgeted orders for 480,000 units) Actual (based on actual orders for 450,000 units) Sales revenue $4,487,000 $4,320,000 Less Variable costs Materials 1,536,000 223,000 578,100 442,000 $2,779,100 $1,707,900 1,536,000 288,000 528,000 456,000 $2,808,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin $1,512,000 Less Fixed costs Manufacturing overhead Marketing Administrative 653,700 180,000 128,000 $961,700 625,000 180,000 105,000 $ 910,000 Total fixed costs

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 recelves orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on Master Budget (based actual orders for AS0,000 units) $4,974, 000 on budgeted orders for 480,000 units) $4, 800, 000 Sales revenue Less Variable costs Haterials Direct labor Variable overhead Variable narketing and administrative Total variable costs Contribution margin 1,440,000 248,000 S30, 700 420,500 1,440, 000 312,000 480,000 432,000 $2,664, 000 $2,136,000 $2,639, 200 $2,334, 800 Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 933,200 283,000 198, 000 $1,414, 200 $ 920,600 905,000 283,000 177,000 $1,365,000 $ 771,000 Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)