The results for July for Brahms & Sons follow: Sales revenues Less Variable costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Less Fixed costs Manufacturing Marketing Administration. Total fixed costs Operating profits Sales revenues Variable costs: Direct material Direct labor Variable overhead Marketing Administration Contribution margin Fixed costs: Manufacturing Marketing Administration Actual (based on actual sales of 58,800 units) $462,000 Operating profits 58,800 54,600 63,400 20,400 18,800 Required: Prepare a profit variance analysis for Brahms & Sons. (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 either option.) 58,800 54,600 63,400 20,400 18,800 $ 246,000 $216,000 $246,000 102,400 22,800 81,200 $ 39,600 102,400 22,800 81,200 $206,400 $ 39,600 Master Budget (based on budgeted sales of 56,000 units) $480,000 48,000 64,000 64,000 20,000 20,000 $216,000 $264,000 Actual (58,800 Manufacturing Variance Units) $ 462,000 100,000 20,000 80,000 $200,000 $ 64,000 BRAHMS & SONS Profit Variance Analysis Marketing & Administration Variance Sales Price Variance Flexible Budget (Units) $ $ 0 0 Sales Activity Variance Master Budget (56,000 Units) $ 480,000 $ $ 48,000 64,000 64,000 20,000 20,000 264,000 100,000 20,000 80,000 64,000
The results for July for Brahms & Sons follow: Sales revenues Less Variable costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Less Fixed costs Manufacturing Marketing Administration. Total fixed costs Operating profits Sales revenues Variable costs: Direct material Direct labor Variable overhead Marketing Administration Contribution margin Fixed costs: Manufacturing Marketing Administration Actual (based on actual sales of 58,800 units) $462,000 Operating profits 58,800 54,600 63,400 20,400 18,800 Required: Prepare a profit variance analysis for Brahms & Sons. (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 either option.) 58,800 54,600 63,400 20,400 18,800 $ 246,000 $216,000 $246,000 102,400 22,800 81,200 $ 39,600 102,400 22,800 81,200 $206,400 $ 39,600 Master Budget (based on budgeted sales of 56,000 units) $480,000 48,000 64,000 64,000 20,000 20,000 $216,000 $264,000 Actual (58,800 Manufacturing Variance Units) $ 462,000 100,000 20,000 80,000 $200,000 $ 64,000 BRAHMS & SONS Profit Variance Analysis Marketing & Administration Variance Sales Price Variance Flexible Budget (Units) $ $ 0 0 Sales Activity Variance Master Budget (56,000 Units) $ 480,000 $ $ 48,000 64,000 64,000 20,000 20,000 264,000 100,000 20,000 80,000 64,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The results for July for Brahms & Sons follow:
Sales revenues
Less
Variable costs
Direct material
Direct labor
Variable overhead
Marketing
Administration
Total variable costs.
Contribution margin.
Less
Fixed costs
Manufacturing
Marketing
Administration
Total fixed costs.
Operating profits
Sales revenues
Variable costs:
Direct material
Direct labor
Variable overhead
Marketing
Administration
Contribution margin
Fixed costs:
Manufacturing
Marketing
Administration
Actual (based on
actual sales of
58,800 units)
$462,000
Operating profits
Actual
(58,800
Units)
$ 462,000
58,800
54,600
63,400
20,400
18,800
$ 246,000
58,800
54,600
63,400
Required:
Prepare a profit variance analysis for Brahms & Sons. (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 either option.)
102,400
22,800
81,200
$ 39,600
20,400
18,800
$216,000
$246,000
102,400
22,800
81,200
$206,400
$ 39,600
Master Budget
(based on
budgeted sales
of 56,000 units)
$480,000
48,000
64,000
64,000
20,000
20,000
$216,000
$264,000
100,000
20,000
80,000
$200,000
$ 64,000
Manufacturing Variance
BRAHMS & SONS
Profit Variance Analysis
Marketing &
Administration Variance
Sales Price
Variance
Flexible
Budget
(Units)
$
$
0
0
Sales Activity
Variance
Master Budget
(56,000 Units)
$
480,000
$
$
48,000
64,000
64,000
20,000
20,000
264,000
100,000
20,000
80,000
64,000
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