- Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 1 (212.03 KiB) Viewed 24 times
- Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 2 (246.15 KiB) Viewed 24 times
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: Actual (based on actual orders for 450,000 units) Master Budget (based on budgeted orders for 480,000 units) Sales revenue $4,493,000 $4,320,000 Less Variable costs Materials 1,680,000 1,680,000 Direct labor 225,000 288,000 Variable overhead 579,800 528,000 Variable marketing and administrative 397,500 408,000 Total variable costs $2,882,300 $2,904,000 Contribution margin $1,610, 700 $1,416,000 Less Fixed costs Manufacturing overhead 888,800 860,000 Marketing 278,000 Administrative 278,000 172,000 192,000 Total fixed costs $1,358,800 $1,310,000 $ 251,900 $ 106, 000 Operating profits
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)