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The master budget at Monroe Manufacturing last period called for sales of 42,700 units at $49 each. The costs were estimated to be $33 variable per unit and $531,000 fixed. During the period, actual production and actual sales were 45,700 units. The selling price was $48 per unit. Variable costs were $35 per unit. Actual fixed costs were $522,000. 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 Actual $ 2,193,600 $ 2,193,600 $ 1,671,600 Monroe Manufacturing Profit Variance Analysis Manufacturing Variances U U ›› 522,000✔ (9,000) F ✓ U › › Answer is not complete. Sales Price Variance $(45,700) U $(45,700) U $(45,700)✔✔U Flexible Budget $2,239,300 $ 2,239,300 531,000 $ 1,708,300 $ Sales Activity Variance $147,000 F 0✔ (43,400) U F F Master Budget $ 2,092,300✔ ✓ 1,409,100✔ 683,200 ✓$ $ 531,000 152,200

The master budget at Monroe Manufacturing last period called for sales of 42,700 units at $49 each. The costs were estimated to be $33 variable per unit and $531,000 fixed. During the period, actual production and actual sales were 45,700 units. The selling price was $48 per unit. Variable costs were $35 per unit. Actual fixed costs were $522,000. 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 Actual $ 2,193,600 $ 2,193,600 $ 1,671,600 Monroe Manufacturing Profit Variance Analysis Manufacturing Variances U U ›› 522,000✔ (9,000) F ✓ U › › Answer is not complete. Sales Price Variance $(45,700) U $(45,700) U $(45,700)✔✔U Flexible Budget $2,239,300 $ 2,239,300 531,000 $ 1,708,300 $ Sales Activity Variance $147,000 F 0✔ (43,400) U F F Master Budget $ 2,092,300✔ ✓ 1,409,100✔ 683,200 ✓$ $ 531,000 152,200

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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The master budget at Monroe Manufacturing last period called for sales of 42,700 units at $49 each. The costs were estimated to be $33 variable per unit and $531,000 fixed. During the period, actual production and actual sales were 45,700 units. The selling price was $48 per unit. Variable costs were $35 per unit. Actual fixed costs were $522,000. 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 Actual $ 2,193,600 $ 2,193,600 $ 1,671,600 Monroe Manufacturing Profit Variance Analysis Manufacturing Variances U U 522,000✔ (9,000) F U ✓ Answer is not complete. ✔ Sales Price Variance $(45,700) U ✓$(45,700)✔✔ U $(45,700) U ✓ $ $ Flexible Budget 2,239,300 $ 2,239,300 531,000✔ 1,708,300 Sales Activity Variance $147,000 F 0✔ (43,400) U F F Master Budget $ 2,092,300✔ ✓ ✓$ 1,409,100✔ $ 683,200 $ 531,000 152,200
Transcribed Image Text:The master budget at Monroe Manufacturing last period called for sales of 42,700 units at $49 each. The costs were estimated to be $33 variable per unit and $531,000 fixed. During the period, actual production and actual sales were 45,700 units. The selling price was $48 per unit. Variable costs were $35 per unit. Actual fixed costs were $522,000. 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 Actual $ 2,193,600 $ 2,193,600 $ 1,671,600 Monroe Manufacturing Profit Variance Analysis Manufacturing Variances U U 522,000✔ (9,000) F U ✓ Answer is not complete. ✔ Sales Price Variance $(45,700) U ✓$(45,700)✔✔ U $(45,700) U ✓ $ $ Flexible Budget 2,239,300 $ 2,239,300 531,000✔ 1,708,300 Sales Activity Variance $147,000 F 0✔ (43,400) U F F Master Budget $ 2,092,300✔ ✓ ✓$ 1,409,100✔ $ 683,200 $ 531,000 152,200
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