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Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000

Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1COMP
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Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000
Transcribed Image Text:Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 411,600 units) $ 7,820,400 Master Budget (based on budgeted orders for 367,500 units) $7,350,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures 2,640,600 237,000 1,213,600 874,000 $ 4,965,200 $2,855,200 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,623,000 546,400 363,000 $ 2,532,400 1,650,000 530,000 395,000 $2,575,000 $ 351,000 $ 322,800 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Actual Manufacturing Variances S 7,820,400 Fournier Fixtures Profit Variance Analysis Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance U Materials 2,640,600 Direct labor 237,000 Variable overhead 1,213,600 2 2 Variable marketing and administrative 874,000 Խ Total variable costs $ 4,965,200 F $ 0 Խ Contribution margin $ 2,855,200 Խ 2 $ 0 Fixed costs: Marketing Manufacturing overhead Administrative Total fixed costs 1,623,000 2 546,400 363,000 5 2,532,400 Operating profits S 322,800 2 $ 0 $ 0 Master Budget $ 7,350,000 2,345,000 217,000 1,078,000 784,000 $ 4,424,000 $ 2,926,000 1,650,000 530,000 305,000 $2,575,000 $ 351,000
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