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when it receives orders and, therefore, has no inventories. The following information is available for the current month: Master Budget (based on Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on budgeted orders actual orders for for 362,500 406,000 units) $7,714,000 2,629,000 235,000 1,204,000 870,000 4,938,000 $ $ 2,776,000 1,605,000 526,000 345,000 $ 2,476,000 $ 300,000 units) $ 7,250,000 2,335,000 215,000 1,070,000 780,000 $ 4,400,000 $ 2,850,000 1,630,000 510,000 375,000 $2,515,000 $ 335,000 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: 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.

when it receives orders and, therefore, has no inventories. The following information is available for the current month: Master Budget (based on Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on budgeted orders actual orders for for 362,500 406,000 units) $7,714,000 2,629,000 235,000 1,204,000 870,000 4,938,000 $ $ 2,776,000 1,605,000 526,000 345,000 $ 2,476,000 $ 300,000 units) $ 7,250,000 2,335,000 215,000 1,070,000 780,000 $ 4,400,000 $ 2,850,000 1,630,000 510,000 375,000 $2,515,000 $ 335,000 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: 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.

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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Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on budgeted orders actual orders for for 362,500 406,000 units) units) $7,714,000 $ 7,250,000 2,629,000 235,000 1,204,000 870,000 Master Budget (based on $ 4,938,000 $ 2,776,000 1,605,000 526,000 345,000 $ 2,476,000 $ 300,000 2,335,000 215,000 1,070,000 780,000 $4,400,000 $2,850,000 1,630,000 510,000 375,000 $ 2,515,000 $ 335,000 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: 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.
Transcribed Image Text:Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on budgeted orders actual orders for for 362,500 406,000 units) units) $7,714,000 $ 7,250,000 2,629,000 235,000 1,204,000 870,000 Master Budget (based on $ 4,938,000 $ 2,776,000 1,605,000 526,000 345,000 $ 2,476,000 $ 300,000 2,335,000 215,000 1,070,000 780,000 $4,400,000 $2,850,000 1,630,000 510,000 375,000 $ 2,515,000 $ 335,000 Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: 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.
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