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Question

i Chrome File Edit View History Bookmarks People Window Help © a 69% O Mon May 16 2:36:53 PM Benjamin McElwain Q E WileyPLUS edugen.wileyplus.com redugen/iti/main.uni Return to Blackboard WileyPLUS Managerial Accounting 2e, WileyPLUS Custom Course for University of California Riverside Help I System Announcements PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES | | Problem 6-27 (Part Level Submission ) HW6 Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 158,700 board games. The budgeted income 6-27 (P statement for the period is as follows. Problem 6-30 (Part Level Submission) Review score Its by stud objective Sales Revenue $2,539,200 Variable expenses Direct materials $634,800 Direct labor 238,050 Variable overhead 539,580 Total variable expenses 1,412,430 Contribution margin 1,126,770 Fixed overhead 254,800 Fixed selling and administrative expenses 508,500 Total fixed expenses 763,300 Operating income $363,470 During November, Barnes produced and sold 193,900 board games. Actual results for the month are as follows . Sales Revenue Variable expenses Direct materials Direct labor variable overhead $3,091,600 $762,700 303,950 671,160 Total variable expenses Contribution margin Fixed overhead 278,600 Fixed selling and administrative expenses 508,500 Total fixed expenses 737,810 1,353,790 787,100 Operating income $566,690 999 g 0 a 1 9 J E®o B RAO

Explanation / Answer

Answer.a. Flexible Budget For November Unit 193900 Games Sales                        16.00            3,102,400.00 Less: Variable Expenses Direct Material                           4.00                775,600.00 Direct Labor                           1.50                290,850.00 Variable Overhead                           3.40                659,260.00 Total Variable Expenses                           8.90            1,725,710.00 Contribution Marigin                           7.10            1,376,690.00 Less: Fixed Expenses Fixed Overheads                254,800.00 Fixed Selling & Admn. Exp.                508,500.00 Total Fixed Expenses                763,300.00 Operating Income                613,390.00 Answer b. Actual Results Static Budget Variance Static Budget Unit Sales                    193,900                        35,200 F            158,700 Sales                3,091,600         2,539,200 Less: Variable Expenses Direct Material                    762,700                      127,900 U            634,800 Direct Labor                    303,950                        65,900 U            238,050 Variable Overhead                    671,160                      131,580 U            539,580 Total Variable Expenses                1,737,810                      325,380 U         1,412,430 Contribution Marigin                1,353,790                      227,020 F         1,126,770 Less: Fixed Expenses Fixed Overheads                    278,600                        23,800 U            254,800 Fixed Selling & Admn. Exp.                    508,500                                  -              508,500 Total Fixed Expenses                    787,100                        23,800 U            763,300 Operating Income                    566,690                      203,220 F            363,470

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