Exercise 16-21 (Algo) Flexible Budgeting (LO 16-2)The master budget at Western Company last period called for sales of 245,000 units at $9.10 each. The costs were estimated to be$4.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 250,000 units. The sellingprice was $9.20 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000.Required:Prepare a flexible budget for Western.WESTERN COMPANYFlexible Budget

Sales for Flexible Budget = 250000 units x $9.10 = $2275000 Variable Cost for Flexible Budget = 250000 units x $4 = $1000000Flexible Budget (Activity Level 250000) Particulars Amount Sales @ $9.10 per unit $2275000 (-) Variable Cost @ $4 per unit $1000000 Contribution Margin $1275000 (-) Fixed Costs $270000 Operating Profit $1005000

Answered: Required: Prepare a flexible budget for…

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Required: Prepare a flexible budget for Western. WESTERN COMPANY Flexible Budget %24 %24

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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