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Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 414,400 units) $ 7,873,600 Master Budget (based on budgeted orders for 370,000 units) $ 7,400,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: 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. Sales revenue Variable costs. Actual Manufacturing Variances $ 7,873,600 Materials Direct labor 2,646,400 238,000 Variable overhead 1,218,400 Variable marketing and administrative 876,000 Total variable costs $ 4,978,800 Contribution margin $ 2,894,800 Fixed costs Manufacturing overhead 1,632,000 Marketing 556,600 Administrative Total fixed costs 372,000 $ 2,560,600 Operating profits $ 334,200 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 7,400,000 $ $ 0 0 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 0 $ 0 $ 359,000 < Prev 3 of 10 Next >

Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 414,400 units) $ 7,873,600 Master Budget (based on budgeted orders for 370,000 units) $ 7,400,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: 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. Sales revenue Variable costs. Actual Manufacturing Variances $ 7,873,600 Materials Direct labor 2,646,400 238,000 Variable overhead 1,218,400 Variable marketing and administrative 876,000 Total variable costs $ 4,978,800 Contribution margin $ 2,894,800 Fixed costs Manufacturing overhead 1,632,000 Marketing 556,600 Administrative Total fixed costs 372,000 $ 2,560,600 Operating profits $ 334,200 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 7,400,000 $ $ 0 0 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 0 $ 0 $ 359,000 < Prev 3 of 10 Next >

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1COMP
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Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 414,400 units) $ 7,873,600 Master Budget (based on budgeted orders for 370,000 units) $ 7,400,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: 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. Sales revenue Variable costs. Actual Manufacturing Variances $ 7,873,600 Materials Direct labor 2,646,400 238,000 Variable overhead 1,218,400 Variable marketing and administrative 876,000 Total variable costs $ 4,978,800 Contribution margin $ 2,894,800 Fixed costs Manufacturing overhead 1,632,000 Marketing 556,600 Administrative Total fixed costs 372,000 $ 2,560,600 Operating profits $ 334,200 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 7,400,000 $ $ 0 0 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 0 $ 0 $ 359,000 < Prev 3 of 10 Next >
Transcribed Image Text:Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 414,400 units) $ 7,873,600 Master Budget (based on budgeted orders for 370,000 units) $ 7,400,000 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 Required: Prepare a profit variance analysis for Fournier Fixtures 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: 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. Sales revenue Variable costs. Actual Manufacturing Variances $ 7,873,600 Materials Direct labor 2,646,400 238,000 Variable overhead 1,218,400 Variable marketing and administrative 876,000 Total variable costs $ 4,978,800 Contribution margin $ 2,894,800 Fixed costs Manufacturing overhead 1,632,000 Marketing 556,600 Administrative Total fixed costs 372,000 $ 2,560,600 Operating profits $ 334,200 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 7,400,000 $ $ 0 0 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 0 $ 0 $ 359,000 < Prev 3 of 10 Next >
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