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
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month....
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fadcb027d-732c-486e-b0c8-f9f0ef7820b1%2F99ac7f21-1974-4095-ac5e-b6bde0cbad01%2F5hsvv88_processed.jpeg&w=3840&q=75)
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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