The results for July for Brahms&Sons; follow: Actual (based on actual sales of 5

Question

The results for July for Brahms&Sons; follow: Actual (based on actual sales of 57,200 units) $479,500 Master Budget (based on budgeted sales of 52,000 units) $490,000 Sales revenues Less Variable costs Direct material Direct labor Variable overhead Marketing Administration 59,800 46,700 55,300 19,400 17,800 $199,000 $280,500 49,000 56,000 56,000 19,000 19,000 $199,000 $291,000 Total variable costs Contribution margin Less Fixed costs Manufacturing Marketing Administration 95,700 18,600 79,500 $193,800 $ 86,700 93,600 15,600 $78,000 $187,200 $103,800 Total fixed costs Operating profits Required Prepare a flexible budget for Brahms & Sons for July. (Do not round intermediate calculations.) BRAHMS&SONS; Flexible Budget Sales revenue Variable costs Manufacturing costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administration Total fixed costs Operating profits

Explanation / Answer

Flexible budget :

Sales revenue 539000 Variable cost Manufacturing cost Direct material 53900 Direct labour 61600 Variable overhead 61600 Marketing 20900 Administration 20900 Total variable costs 218900 Contribution margin 320100 Fixed costs : Manufacturing 93600 Marketing 15600 Administration 78000 Total fixed costs 187200 Operating profit 132900

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