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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 450,000 units) $4,968,000 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costS Contribution margin Less Fixed costs 1,440,000 276,000 674,400 468,000 $2,858,400 $2,109,600 1,440,000 336,000 624,000 480,000 $2,880,000 $1,920,000 Manufacturing overhead Marketing Administrative Total fixed costs 988,800 288,000 204,000 $1,480,800 960,000 288,000 180,000 $1,428,000 Operating profits $ 628,800 $ 492,000

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) $4,968,000 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costS Contribution margin Less Fixed costs 1,440,000 276,000 674,400 468,000 $2,858,400 $2,109,600 1,440,000 336,000 624,000 480,000 $2,880,000 $1,920,000 Manufacturing overhead Marketing Administrative Total fixed costs 988,800 288,000 204,000 $1,480,800 960,000 288,000 180,000 $1,428,000 Operating profits $ 628,800 $ 492,000

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: Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Actual (based on actual orders for 450,000 units) $4,968,000 Sales revenue Less Variable costs Materials 1,440,000 276,000 674,400 468,000 $2,858,400 $2,109,600 1,440,000 336,000 624,000 480,000 $2,880,000 $1,920,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs 988,800 288,000 204,000 $1,480,800 $ 628,800 960,000 288,000 180,000 $1,428,000 $ 492,000 Operating profits
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: Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Actual (based on actual orders for 450,000 units) $4,968,000 Sales revenue Less Variable costs Materials 1,440,000 276,000 674,400 468,000 $2,858,400 $2,109,600 1,440,000 336,000 624,000 480,000 $2,880,000 $1,920,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs 988,800 288,000 204,000 $1,480,800 $ 628,800 960,000 288,000 180,000 $1,428,000 $ 492,000 Operating profits
Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.) OSAGE, INC. Flexible Budget 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 profit
Transcribed Image Text:Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.) OSAGE, INC. Flexible Budget 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 profit
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