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The following are the actual results for Bentler Associates for the most recent period: 77,440 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 1,006,720 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 254,080 39,350 $ 713,290 451,820 104,250 $ 157,220 The company planned to produce and sell 88,000 units for $12.50 each. At that volume, the contribution margin would have been $776,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 88,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."

The following are the actual results for Bentler Associates for the most recent period: 77,440 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ 1,006,720 Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. 254,080 39,350 $ 713,290 451,820 104,250 $ 157,220 The company planned to produce and sell 88,000 units for $12.50 each. At that volume, the contribution margin would have been $776,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 88,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume."

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 31P: The actions listed next are associated with either an activity-based operational control system or a...
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The following are the actual results for Bentler Associates for the most recent period: 77,440 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 1,006,720 254, 080 39,350 $ 713,290 The company planned to produce and sell 88,000 units for $12.50 each. At that volume, the contribution margin would have been $776,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 88,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required A Required B 451,820 104, 250 $ 157,220 Complete this question by entering your answers in the tabs below. Prepare a profit variance analysis. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If the option. Enter your final answers as a whole number.) BENTLER ASSOCIATES
Transcribed Image Text:The following are the actual results for Bentler Associates for the most recent period: 77,440 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 1,006,720 254, 080 39,350 $ 713,290 The company planned to produce and sell 88,000 units for $12.50 each. At that volume, the contribution margin would have been $776,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 88,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required A Required B 451,820 104, 250 $ 157,220 Complete this question by entering your answers in the tabs below. Prepare a profit variance analysis. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If the option. Enter your final answers as a whole number.) BENTLER ASSOCIATES
Required A Required B Construct the master budget for the period. Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: BENTLER ASSOCIATES Master Budget Manufacturing Marketing and administrative Operating profit Show Transcribed Text Required A Required B Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Complete this question by entering your answers in the tabs below. Manufacturing Marketing and administrative Operating profit Actual $ 1,006,720 $ Prepare a profit variance analysis. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If the option. Enter your final answers as a whole number.) 254,080 39,350 $ 713,290 $ 451.820 104,250 $ 157,220 0 0 units < Required A Manufacturing Variances Required B > BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget
Transcribed Image Text:Required A Required B Construct the master budget for the period. Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: BENTLER ASSOCIATES Master Budget Manufacturing Marketing and administrative Operating profit Show Transcribed Text Required A Required B Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Complete this question by entering your answers in the tabs below. Manufacturing Marketing and administrative Operating profit Actual $ 1,006,720 $ Prepare a profit variance analysis. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If the option. Enter your final answers as a whole number.) 254,080 39,350 $ 713,290 $ 451.820 104,250 $ 157,220 0 0 units < Required A Manufacturing Variances Required B > BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget
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