The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget.
The following information concerning actual results is available from Hamburg, Incorporated: Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Fixed costs: Manufacturing Marketing and administrative Operating profit 77,040 units $ 797,800 199,570 140,850 222,000 62,790 $ 172,590 The company planned to sell 66,200 units at a price of $11 each. Variable marketing and administrative costs are budgeted at 15 percent of revenue. You have discovered that the manufacturing fixed costs are budgeted to be $3 per unit at the budgeted volume. You know that the company policy is to budget for an operating profit of $2.55 per unit. Finally, you recall that the master budget for fixed marketing and administrative costs is $66,200. Hamburg does not carry any inventories. Required: Prepare a report showing the differences between the actual results, flexible budget, and the master budget.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...
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