Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Master Budget (based on Actual (based on budgeted orders actual orders for for 392,500 439,600 units) units) $ 8,352,400 $ 7,850,000 2,698,600 247,000 1,261,600 894,000 $ 5,101,200 $ 3,251,200 1,713,000 648,400 453,000 $ 2,814,400 $ 436,800 2,395,000 227,000 1,118,000 804,000 $ 4,544,000 $ 3,306,000 1,750,000 630,000 495,000 $ 2,875,000 $ 431,000
Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Master Budget (based on Actual (based on budgeted orders actual orders for for 392,500 439,600 units) units) $ 8,352,400 $ 7,850,000 2,698,600 247,000 1,261,600 894,000 $ 5,101,200 $ 3,251,200 1,713,000 648,400 453,000 $ 2,814,400 $ 436,800 2,395,000 227,000 1,118,000 804,000 $ 4,544,000 $ 3,306,000 1,750,000 630,000 495,000 $ 2,875,000 $ 431,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42P: Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data...
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