Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Master Budget (based on budgeted orders for 480,000 units) Actual (based on actual orders for 450,000 units) Sales revenue $4,487,000 $4,320,000 Less Variable costs Materials 1,536,000 223,000 578,100 442,000 $2,779,100 $1,707,900 1,536,000 288,000 528,000 456,000 $2,808,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin $1,512,000 Less Fixed costs Manufacturing overhead Marketing Administrative 653,700 180,000 128,000 $961,700 625,000 180,000 105,000 $ 910,000 Total fixed costs
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Master Budget (based on budgeted orders for 480,000 units) Actual (based on actual orders for 450,000 units) Sales revenue $4,487,000 $4,320,000 Less Variable costs Materials 1,536,000 223,000 578,100 442,000 $2,779,100 $1,707,900 1,536,000 288,000 528,000 456,000 $2,808,000 Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin $1,512,000 Less Fixed costs Manufacturing overhead Marketing Administrative 653,700 180,000 128,000 $961,700 625,000 180,000 105,000 $ 910,000 Total fixed costs
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 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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