h 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 theoption. Enter your final answers as a whole number.)Sales revenueVariable costs:ManufacturingMarketing and administrativeContribution marginFoxed costs:ManufacturingMarketing and administrativeOperating profit$$Actual903,760218,08038,900646,780406,640103,800$ 136.340ManufacturingVariancesBENTLER ASSOCIATESProfit Variance AnalysisMarketing andAdministrativeVariances$Sales Price VarianceFlexibleBudgetSales Activity VarianceMasterBudget The following are the actual results for Bentler Associates for the most recent period:69,520 unitsSales volumeSales revenueVariable costsManufacturingMarketing and administrativeContribution marginFixed costsManufacturingMarketing and administrative.Operating profit$ 903,760Required:a. Construct the master budget for the period.b. Prepare a profit variance analysis.218,08038,900$ 646,780406,640103,800$ 136,340The company planned to produce and sell 79,000 units for $12.50 each. At that volume, the contribution margin would have been$704,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs areestimated at $5 per unit at the budgeted volume of 79,000 units. Management notes, "We budget an operating profit of $2.50 per unitat the budgeted volume."

Sales price variance represents a difference between the standard selling price at which a company…

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) Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ $ $ Actual 903,760 218.080 38,900 646,780 406,640 103,800 136.340 Manufacturing Varlances BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget

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) Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit $ $ $ Actual 903,760 218.080 38,900 646,780 406,640 103,800 136.340 Manufacturing Varlances BENTLER ASSOCIATES Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 33P

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