Sales revenueVariable costs:Manufacturing costs:Direct laborMaterialsVariable overheadMarketingAdministrativeTotal variable costsContribution marginFixed costs:ManufacturingMarketingAdministrativeTotal fixed costsOperating profitsNOTTINGHAM FOREST PRODUCTSSales Activity VarianceFlexible Budget(based onactual of 4,800units)Sales Activity VarianceMaster Budget(based onbudgeted 4,000units)$$$$$EA188,00039,00027,20013,1006,2006,50092,00096,00037,40012,20010,40060,00036,000 Nottingham Forest Products reports the following information concerning operations for the most recent month:Master Budget(based onSales revenueLessManufacturing costsDirect laborMaterialsVariable overheadMarketingAdministrativeTotal variable costsContribution marginFixed costsManufacturingMarketingAdministrativeTotal fixed costsOperating profitsThere are no inventories.Actual (basedon actual sales budgeted salesof 4,800 units)of 4,000units)$ 188,000$ 228,70050,30231,52016,6087,8057,215$ 113,450$ 115,25038,93014,8609,510$ 63,300$ 51,95039,00027, 20013,1006,2006,500$ 92,000$ 96,00037,40012, 20010,400$ 60,000$ 36,000Required:Prepare a sales activity variance analysis for Nottingham Forest Products.

The variance is the difference between the standard and actual cost production data. The sales…

Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits Actual (based on actual sales of 4,800 units) $ 228,700 50, 302 31,520 16,608 7,805 7,215 $ 113,450 $ 115,250 38,930 14,860 9,510 $ 63,300 $ 51,950 Master Budget (based on budgeted sales of 4,000 units) $ 188,000 39,000 27, 200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $ 36,000

Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits Actual (based on actual sales of 4,800 units) $ 228,700 50, 302 31,520 16,608 7,805 7,215 $ 113,450 $ 115,250 38,930 14,860 9,510 $ 63,300 $ 51,950 Master Budget (based on budgeted sales of 4,000 units) $ 188,000 39,000 27, 200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $ 36,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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