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The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. 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 elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500

The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. 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 elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500

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 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. 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 elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500
Transcribed Image Text:The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. 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 elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500
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