Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units
Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are the actual results for Bentler Associates for the most recent period: Sales volume 66,880 units $ Sales revenue Variable costs 869,440 Manufacturing 206,080 Marketing and 38,750 administrative $ Contribution margin. 624,610 Fixed costs Manufacturing 391,580 Marketing and 103,650 administrative $ Operating profit 129,380 The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required Required A B Construct the master budget for the period. BENTLER ASSOCIATES Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 16-55 (Algo) Solve for Master Budget Given Actual Results (LO 16-2, 4)
The following are the actual results for Bentler Associates for the most recent period:
Sales volume
66,880 units
$
Sales revenue
Variable costs
869,440
Manufacturing
206,080
Marketing and
38,750
administrative
$
Contribution margin.
624,610
Fixed costs
Manufacturing
391,580
Marketing and
103,650
administrative
$
Operating profit
129,380
The company planned to produce and sell 76,000 units for $12.50 each. At that volume, the contribution margin would
have been $680,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue.
Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 76,000 units. Management notes,
"We budget an operating profit of $2.50 per unit at the budgeted volume."
Required:
a. Construct the master budget for the period.
b. Prepare a profit variance analysis.
Complete this question by entering your answers in the tabs below.
Required Required
A
B
Construct the master budget for the period.
BENTLER ASSOCIATES
Master Budget
Sales volume
Sales revenue
Variable costs:
Manufacturing
Marketing and
administrative
Contribution margin
$
0
Fixed costs:
Manufacturing
Marketing and
administrative
Operating profit
$
0
units
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