The results for March for Savery Parts 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 Actual (based on actual sales of 15,057 units) $ 289,365 51,690 44,272 34,273 12,374 18,361 $ 160,970 $ 128,395 36,715 16,972 24,761 $78,448 $ 49,947 Master Budget (based on budgeted sales of 17,925 units) $ 326,235 63,270 52,470 41,370 13,270 21,570 $191,950 $ 134,285 33,170 15,170 27,170 $ 75,510 $ 58,775

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.