Assessment 4 Part 4: Prepare Flexible Budget

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Assessment 4 Part 4: Prepare Flexible Budget

Assessment 4 Part 4: Prepare Flexible Budget
Assessment 4 Part 4: Prepare Flexible Budget
Assessment 4 Part 4: Prepare Flexible Budget
Scenario:
Oak Grove, Inc., reports the following information concerning operations for the most recent month. There are no inventories.
Actual (based on actual of 1080 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
REQUIRED
Prepare a flexible budget for Oak Grove, Inc.

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