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 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 190,080 38,550 $ 595,050 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." Required A Required B 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below. 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 as a whole number.
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 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 190,080 38,550 $ 595,050 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." Required A Required B 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below. 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 as a whole number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
Transcribed Image Text:Required A Required B
Construct the master budget for the period.
BENTLER ASSOCIATES
Master Budget
Sales volume
Sales revenue
Variable costs:
Manufacturing
Marketing and administrative
Contribution margin
Fixed costs:
Manufacturing
Marketing and administrative
Operating profit
Show Transcribed Text
Required A Required B
Sales revenue
Variable costs:
Manufacturing
Marketing and administrative
Contribution margin
Fixed costs:
Manufacturing
Marketing and administrative
Operating profit
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 ei
as a whole number.
Actual
S 823,680
190,080
38,550
S 595,050
$
371,500
103,450
120,100
$
Manufacturing
Variances
$
BENTLER ASSOCIATES
Profit Variance Analysis
Marketing and
Administrative
Variances
0
< Required A
0
units
Sales Price Variance
Flexible
Budget
—
Required B >
Sales Activity Variance Master Budget
Transcribed Image Text:The following are the actual results for Bentler Associates for the most recent period:
Sales volume
Sales revenue
Variable costs
Manufacturing
Marketing and administrative
Contribution margin.
Fixed costs
Manufacturing
Marketing and administrative
Operating profit
Required:
a. Construct the master budget for the period.
b. Prepare a profit variance analysis.
63,360 units
$823,680
Required A Required B
190,080
38,550
$ 595,050
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."
371,500
103,450
$ 120,100
Complete this question by entering your answers in the tabs below.
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
as a whole number.
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