Allard Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.20 per unit $ 3.10 per unit $2,600 total $ 800 total Allard planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.
Allard Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.20 per unit $ 3.10 per unit $2,600 total $ 800 total Allard planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Allard Manufacturing Company established the following standard price and cost data.
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and
administrative cost
$8.20 per
unit
$ 3.10 per
unit
$2,600 total
$ 800 total
Allard planned to produce and sell 2,200 units. Actual production and sales
amounted to 2,400 units.
Transcribed Image Text:Required
a. Prepare the pro forma income statement in contribution format that would appear in a
master budget.
ALLARD MANUFACTURING COMPANY
Pro Forma Income Statement
Sales
Variable selling and administrative
Contribution margin
Fixed selling and administrative
Net income
Master Budget
2,200 Units
$
$
19,680
7,440
12,240
3,400
8,840
b. Prepare the pro forma income statement in contribution format that would appear in a
flexible budget.
ALLARD MANUFACTURING COMPANY
Pro Forma Income Statement
Flexible Budget
2,400 Units
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