How would I prepare a flexible budget? Please see attached picture for the whole problem and the answer format. Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no Inventories. Thefollowing Information Is available for the current month:Actual (based onactual orders for458, 800 units)$4,494, e08Master Budget (basedon budgeted ordersfor 480,000 units)Sales revenue$4,328,800LessVariable costsMaterials1,536, 8001,536, 800312,e00624, e00Direct labor247,000674,400421,e00$2,878,400$1,615,600Variable overheadVariable marketing and adninistrative432,e00$2,904,000$1,416,e00Total variable costsContribution marginLessFixed costsManufacturing overheadMarketingAdministrative923, 800278, e00895, e00278,e00200,000$1,401,800$ 213,888175,000$1,348,e00Total fixed costsOperating profits68, e00Required: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 overheadMarketingAdministrative

Answered: Image /qna-images/answer/c8b45298-8564-4ea3-bf5c-ca21b7eb5b20.jpg

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 actual orders for Master Budget (based on budgeted orders for 488, eee units) $4,320, 000 45e, 00e units) $4,494, 000 Sales revenue Less Variable costs 1,536, 000 312,000 624, e00 432,000 $2,904,000 $1,416,000 Materials Direct labor Variable overhead 1,536,000 247,000 674, 400 421,e00 $2,878,400 $1,615,600 Variable marketing and adninistrative Total variable costs Contribut ion margin Less Fixed costs Manufacturing overhead Marketing Adninistrative 923, 800 278,000 200,000 $1,401,800 $ 213,800 895, e00 278,000 175,000 $1, 148,000 Total fixed costs Operating profits 68,e00 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

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 actual orders for Master Budget (based on budgeted orders for 488, eee units) $4,320, 000 45e, 00e units) $4,494, 000 Sales revenue Less Variable costs 1,536, 000 312,000 624, e00 432,000 $2,904,000 $1,416,000 Materials Direct labor Variable overhead 1,536,000 247,000 674, 400 421,e00 $2,878,400 $1,615,600 Variable marketing and adninistrative Total variable costs Contribut ion margin Less Fixed costs Manufacturing overhead Marketing Adninistrative 923, 800 278,000 200,000 $1,401,800 $ 213,800 895, e00 278,000 175,000 $1, 148,000 Total fixed costs Operating profits 68,e00 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

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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