Odessa, Inc., reports the following information concerming operations for the mo
ID: 2400131 • Letter: O
Question
Odessa, Inc., reports the following information concerming operations for the most recent month: Master Budget Actual (based on (based on budgeted actual of 540 units) 600 units) Sales reveanue Less Manufacturing costs 3,632 11.220 7 840 4.950 Direct labor 13,200 9,600 .640 Veriable overhead Total variable costs Fixed costs 4888 982 9.561 4.800 9,600 600 Administrative Total fixed costs 24 208 24000 Operating profits $ 33,720 $38.360 There are no inventories Required Prepare a profit variance analysis for Odessa, Inc. (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.) Profit Variance Analysis Flexible Budget (Units) Actual 540 Marketing and Sales Price Variance Sales Activity Sales revenue 100,370 s 108 Manufacturing Direct labor Materials 13,632 11,220 7,840 4,950 4,800 57,928 Marketing margin Fixed costs: 9,982 9,561 $ 33,720 Operating prof 5 36Explanation / Answer
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Manufacturing Variance Mkt and Adm Variance Sales Price Var (Master Budget/600*540) Sales Activity Var Actual 540 Units Flexible Budget 540 Units Master Budget 600 Units Sales Revenue 100370 3170 F 97200 10800 U 108000 Variable Costs: Manufacturing Direct Labor 13632 672 U 12960 1440 F 14400 Materials 11220 660 F 11880 1320 F 13200 Overheads 7840 800 F 8640 960 F 9600 Marketing 4950 126 F 5076 564 F 5640 Administrative 4800 480 U 4320 480 F 4800 Contribution Margin 57928 54324 6036 F 60360 Fixed Costs: Manufacturing 4665 135 F 4800 0 N 4800 Marketing 9982 382 U 9600 0 N 9600 Administrative 9561 39 F 9600 0 N 9600 Operating Profit 33720 30324 6036 F 36360
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