Osage, Inc., manufactures and lamps. 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 actual orders for 450,000 units) $4,967,000 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 653,800 175,000 137,500 $ 966,300 $1,069,100 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 1,680,000 312,000 480,000 480,000 $2,952,000 $1,848,000 625,000 175,000 112,500 $912,500 $935,500 Required: Prepare a sales activity variance analysis for Osage, 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.)

Osage, Inc., manufactures and lamps. 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 actual orders for 450,000 units) $4,967,000 1,680,000 251,000 531,100 469,500 $2,931,600 $2,035,400 653,800 175,000 137,500 $ 966,300 $1,069,100 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 1,680,000 312,000 480,000 480,000 $2,952,000 $1,848,000 625,000 175,000 112,500 $912,500 $935,500 Required: Prepare a sales activity variance analysis for Osage, 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.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11EA: Potterii sells its products to large box stores and recently added a retail line of products to sell...

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