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Problem 16-55 (Static) 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: 63,360 units Sales volume Sales revenue Variable costs. Manufacturing Marketing and administrative. Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 823,680 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 190,080 38,550 $ 595,050 371,500 103,450 $ 120,100 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."

Problem 16-55 (Static) 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: 63,360 units Sales volume Sales revenue Variable costs. Manufacturing Marketing and administrative. Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 823,680 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 190,080 38,550 $ 595,050 371,500 103,450 $ 120,100 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."

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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Required A Required B Prepare a profit variance analysis. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F* for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your final answer as a whole number. Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit $ $ Actual 823,680 190,080 38,550 595,050 371,500 103.450 120,100 Manufacturing Variances BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances < Required A Sales Price Variance Flexible Budget Required B > Sales Activity Variance Master Budget
Transcribed Image Text:Required A Required B Prepare a profit variance analysis. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F* for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your final answer as a whole number. Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit $ $ Actual 823,680 190,080 38,550 595,050 371,500 103.450 120,100 Manufacturing Variances BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances < Required A Sales Price Variance Flexible Budget Required B > Sales Activity Variance Master Budget
Problem 16-55 (Static) 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: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 823,680 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 190,080 38,550 595,050 371,500 103,450 $ 120,100 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."
Transcribed Image Text:Problem 16-55 (Static) 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: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 823,680 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 190,080 38,550 595,050 371,500 103,450 $ 120,100 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. 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 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."
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