Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories The following information is avallable for the current month: Actual (based on Master Budget (based actual orders for ASe,000 units) on budgeted orders for 40,000 units) $4, 800,000 Sales revenue Less Variable costs $4,974, 000 Haterials Direct labor Variable overhead Variable narketing and administrative Total variable costs Contribution margin Less 1,440,000 248, 000 530, 700 420,500 $2,639, 200 $2,334, B00 1,440, 000 312,000 450, 000 432,000 $2,664, 000 $2,136,000 Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 933,200 283,000 198, e00 $1,414, 200 $ 920,600 905, 000 283,000 177,000 $1, 365, 000 $ 771,000 Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculetions.)
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories The following information is avallable for the current month: Actual (based on Master Budget (based actual orders for ASe,000 units) on budgeted orders for 40,000 units) $4, 800,000 Sales revenue Less Variable costs $4,974, 000 Haterials Direct labor Variable overhead Variable narketing and administrative Total variable costs Contribution margin Less 1,440,000 248, 000 530, 700 420,500 $2,639, 200 $2,334, B00 1,440, 000 312,000 450, 000 432,000 $2,664, 000 $2,136,000 Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 933,200 283,000 198, e00 $1,414, 200 $ 920,600 905, 000 283,000 177,000 $1, 365, 000 $ 771,000 Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculetions.)
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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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Required:
Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)
OSAGE, INC.
Flexible Budget
Sales revenue
Variable costs
Materials
Direct labor
Variable overhead
Variable marketing and administrative
Total variable costs
Contribution margin
Fixed costs
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profit (loss)
Transcribed Image Text:Osage, Inc., manufactures and sells lamps. The company produces only when it recelves orders and, therefore, has no inventories.
The following information is available for the current month:
Actual (based on Master Budget (based
actual orders for
AS0,000 units)
$4,974, 000
on budgeted orders
for 480,000 units)
$4, 800, 000
Sales revenue
Less
Variable costs
Haterials
Direct labor
Variable overhead
Variable narketing and administrative
Total variable costs
Contribution margin
1,440,000
248,000
S30, 700
420,500
1,440, 000
312,000
480,000
432,000
$2,664, 000
$2,136,000
$2,639, 200
$2,334, 800
Less
Fixed costs
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profits
933,200
283,000
198, 000
$1,414, 200
$ 920,600
905,000
283,000
177,000
$1,365,000
$ 771,000
Required:
Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.)
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