Prepare Flexible Budget
Review sales revenue, manufacturing costs, and all other fixed costs to prepare a flexible budget for Oak Grove, Inc.
Part 4 Scenario
Oak Grove, Inc., reports the following information concerning operations for the most recent month:
Oakgrove: Information on Operations
Item
Actual (based on actual 1,080 units)
Master Budget (based on budgeted 1,200 units)
Sales Revenue
$176,640
$192,000
Less Manufacturing Costs
Direct Labor
$27,264
$28,800
Materials
$23,040
$26,880
Variable Overhead
$15,744
$19,200
Marketing
$10,076
$11,520
Administrative
$9,600
$9,600
Total Variable Costs
$85,824
$96,000
Contribution Margin
$90,816
$96,000
Fixed Costs
Manufacturing
$9,380
$9,600
Marketing
$19,968
$19,200
Administrative
$19,122
$19,200
Total Fixed Costs
$48,420
$48,000
Operating Profits
$42,396
$$48,000
There are no inventories.
Complete the following:
Prepare a flexible budget for Oak Grove, Inc.