Required: Prepare a profit variance analysis. Note: 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. Sales revenue Less Variable costs Contribution margin Less Fixed costs Operating profits S $ Actual 0 Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget $ $ 0 Sales Activity Variance Master Budget $ $ 0
Required: Prepare a profit variance analysis. Note: 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. Sales revenue Less Variable costs Contribution margin Less Fixed costs Operating profits S $ Actual 0 Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget $ $ 0 Sales Activity Variance Master Budget $ $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The master budget at Monroe Manufacturing last period called for sales of 42,600 units at $48 each. The costs were estimated to be
$32 variable per unit and $530,000 fixed. During the period, actual production and actual sales were 45,600 units. The selling price
was $47 per unit. Variable costs were $34 per unit. Actual fixed costs were $521,000.
Required:
Prepare a profit variance analysis.
Note: 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.
Sales revenue
Less
Variable costs
Contribution margin
Less
Fixed costs
Operating profits
S
$
Actual
0
01
Monroe Manufacturing
Profit Variance Analysis
Manufacturing
Variances
Sales Price Variance Flexible Budget
$
0
Sales Activity
Variance
Master Budget
$
$
0
0
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