Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inve

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Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 1 (267.61 KiB) Viewed 35 times

Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 2 (243.58 KiB) Viewed 35 times

Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 3 (345.48 KiB) Viewed 35 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 453,000 units) Master Budget (based on budgeted orders for 486,000 units) Sales revenue $4,971, 000 $4,860,000 Less Variable costs Materials 1,455,000 1,458,000 Direct labor 279,000 340, 200 Variable overhead 674, 700 631, 800 Variable marketing and administrative 474,000 486,000 Total variable costs $2,882, 700 $2,916, 000 Contribution margin $2,088, 300 $1,944, 000 Less Fixed costs Manufacturing overhead 989, 400 960, 300 Marketing 291,000 291, 000 Administrative 207,000 180, 300 Total fixed costs $1,487,400 $1,431, 600 $ 600,900 $ 512,400 Operating profits
Prepare a profit variance analysis for Osage, Inc. (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.) OSAGE, INC. Profit Variance Analysis Marketing and Administrative Variances Manufacturing Variances Actual Sales Price Variance Flexible Budget $4,971,000 Sales revenue Variable costs: Materials 1,455,000 Direct labor 279,000 Variable overhead 674,700 Variable marketing and administrative 474,000 Total variable costs $ 2,882,700 Contribution margin $ 2,088,300 Fixed costs: Manufacturing overhead 989,400 Marketing 291,000 Administrative 207,000 Total fixed costs $ 1,487,400 Operating profits $ 600,900 $ 55 $ $ $ 0 0 0 0 Sales Activity Variance
Actual $ 4,971,000 1,455,000 279,000 674,700 474,000 $ 2,882,700 $ 2,088,300 989,400 291,000 207,000 $1,487,400 $ 600,900 OSAGE, INC. Profit Variance Analysis Marketing and Administrative Variances Manufacturing Variances Sales Price Variance $ $ $ Flexible Budget 0 0 Sales Activity Variance Master Budget $4,860,000 1,458,000 340,200 631,800 486,000 $ 2,916,000 $1,944,000 960,300 291,000 180,300 $ 1,431,600 $ 512,400