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The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget.

The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget.

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
Chapter7: Variable Costing For Management analysis
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The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget. 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.
Transcribed Image Text:The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget. 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 units Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit $ Actual $ 77,040 797,800 199,570 140,850 $ 457,380 222,000 62,790 172,590 Manufacturing Variance Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget Sales Activity Variance Master Budget
Transcribed Image Text:Sales units Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit $ Actual $ 77,040 797,800 199,570 140,850 $ 457,380 222,000 62,790 172,590 Manufacturing Variance Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget Sales Activity Variance Master Budget
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