prepare a flexible budget for bayou division for august with the same master budget 691339
Prepare a flexible budget for Bayou Division for August with the same master budget as in Exhibit 16.4 but assuming that 110,000 units were actually sold.
Exhibit 16.4 Flexible and Master Budget, August—Bayou Division
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B |
C |
D |
E |
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Flexible Budget |
Sales Activity |
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Master Budget |
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(based on |
Variance |
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(based on |
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actual activity |
(based on |
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planned |
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of 80,000 |
variance in |
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activity of |
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1 |
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units) |
sales volume) |
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100,000 units) |
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2 |
Sales units |
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80,000 |
20,000 |
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100,000 |
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3 |
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4 |
Sales revenue |
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$ 800,000 |
$ 200,000 |
U |
$ 1,000,000 |
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5 |
Less |
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6 |
Variable costs |
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7 |
Variable manufacturing costs |
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304,000 |
76,000 |
F |
380,000 |
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8 |
Variable selling and administrative |
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72,000 |
18,000 |
F |
90,000 |
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9 |
Total variable costs |
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$ 376,000 |
$ |
94,000 |
F |
$ |
470,000 |
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10 |
Contribution margin |
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$ 424,000 |
$ 106,000 |
U |
$ |
530,000 |
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11 |
Fixed costs |
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12 |
Fixed manufacturing overhead |
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200,000 |
–0– |
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200,000 |
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13 |
Fixed selling and administrative costs |
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140,000 |
–0– |
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140,000 |
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14 |
Total fixed costs |
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$ 340,000 |
–0– |
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$ |
340,000 |
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15 |
Profit |
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$ |
84,000 |
$ 106,000 |
U |
$ |
190,000 |
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16 |
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