Prepare Flexible Budget

Prepare Flexible Budget

Prepare Flexible Budget
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.

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