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 (169.16 KiB) Viewed 35 times

Osage Inc Manufactures And Sells Lamps The Company Produces Only When It Receives Orders And Therefore Has No Inve 2 (306.61 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 450,000 units) Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Sales revenue $4,967,000 Less Variable costs Materials 1,440,000 1,440,000 Direct labor 275,000 336,000 Variable overhead 626,900 576,000 Variable marketing and administrative 418,500 432,000 Total variable costs $2,760, 400 $2,784,000 Contribution margin $2,206, 600 $2,016,000 Less Fixed costs Manufacturing overhead 653, 200 625,000 Marketing 175,000 Administrative 175,000 128,000 105,000 Total fixed costs $ 956, 200 $905,000 $1,250, 400 $1,111,000 Operating profits
Required: Prepare a sales activity 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. Sales Activity Variance Flexible Sales Activity Variance Master Budget 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 profits