The master budget at Monroe Manufacturing last period called for sales of 42,400 units at $46 each. The costs were estimated to be $30 variable per unit and $528,000 fixed. During the period, actual production and actual sales were 45,400 units. The selling price was $45 per unit. Variable costs were $32 per unit. Actual fixed costs were $519,000. Required: Prepare a sales activity 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 Monroe Manufacturing Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Contribution margin $ Less: Fixed costs Operating profits $ $ 0

The master budget at Monroe Manufacturing last period called for sales of 42,400 units at $46 each. The costs were estimated to be $30 variable per unit and $528,000 fixed. During the period, actual production and actual sales were 45,400 units. The selling price was $45 per unit. Variable costs were $32 per unit. Actual fixed costs were $519,000. Required: Prepare a sales activity 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 Monroe Manufacturing Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Contribution margin $ Less: Fixed costs Operating profits $ $ 0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)
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