Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 495 units) Master Budget (based on budgeted 550 units)Sales revenue $85,820 $93,500 Less Manufacturing costs Direct labor 12,422 13,200 Materials 10,110 12,100 Variable overhead 7,540 9,350 Marketing 4,537 5,225 Administrative 4,950 4,950 Total variable costs $39,559 $44,825 Contribution margin $46,261 $48,675 Fixed costs Manufacturing 4,260 4,400 Marketing 9,180 8,800 Administrative 8,755 8,800 Total fixed costs $22,195 $22,000 Operating profits $24,066 $26,675 There are no inventories. Required:Prepare a profit variance analysis for Odessa, Inc. (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. Enter your final answers as a whole number.) Odessa, Inc., reports the following information concerning operations for the most recent month:Actual (basedon actual of495 units)$85,820Master Budget(based onbudgeted 550units)$93,500Sales revenueLessManufacturing costs12,42210,1107,5404,53713,20012,1009,350Direct laborMaterialsVariable overheadMarketingAdministrative5,2254,950$44,8254,950Total variable costsContribution margin$39,559$46,261$48,675Fixed costsManufacturingMarketing4,2609,1808,755$22,1954,4008,8008,800$22,000AdministrativeTotal fixed costsOperating profits$24,066$26,675There are no inventories.Required:Prepare a profit variance analysis for Odessa, Inc. (Do not round intermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your final answers as awhole number.)ODESSA, INC.Profit Variance AnalysisMasterMarketing andAdministrative VarianceActual 495FlexibleManufacturing VarianceSales Price VarianceBudget (Units) Sales Activity Variance Budget (550Units)Units)Sales revenue$85,82093,500Variable costs:Manufacturing costs:Direct labor12,42213,200Materials10,11012,100Overhead7,5409,350Marketing4,5375,225Administrative4,9504,950Contribution marginFixed costs:2$46,261%24$48,675Manufacturing4,2604,400Marketing9,1808,800Administrative8,7558,800Operating profits2424,06626,675

The standard is set in advance, and the actual performance is measured against it. If the actual…

Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 495 units) Master Budget (based on budgeted 550 units) Sales revenue $ 85,820 $ 93,500 Less Manufacturing costs Direct labor 12,422 13,200 Materials 10,110 12,100 Variable overhead 7,540 9,350 Marketing 4,537 5,225 Administrative 4,950 4,950 Total variable costs $ 39,559 $ 44,825 Contribution margin $ 46,261 $ 48,675 Fixed costs Manufacturing 4,260 4,400 Marketing 9,180 8,800 Administrative 8,755 8,800 Total fixed costs $ 22,195 $ 22,000 Operating profits $ 24,066 $ 26,675 There are no inventories. Required: Prepare a profit variance analysis for Odessa, Inc. (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. Enter your final answers as a whole number.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Related questions

Concept explainers

Question

Odessa, Inc., reports the following information concerning operations for the most recent month:

	Actual (based on actual of 495 units)		Master Budget (based on budgeted 550 units)
Sales revenue		$	85,820	$	93,500
Less
Manufacturing costs
Direct labor			12,422		13,200
Materials			10,110		12,100
Variable overhead			7,540		9,350
Marketing			4,537		5,225
Administrative			4,950		4,950
Total variable costs		$	39,559	$	44,825
Contribution margin		$	46,261	$	48,675
Fixed costs
Manufacturing			4,260		4,400
Marketing			9,180		8,800
Administrative			8,755		8,800
Total fixed costs		$	22,195	$	22,000
Operating profits		$	24,066	$	26,675

There are no inventories.

Required:

Prepare a profit variance analysis for Odessa, Inc. (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. Enter your final answers as a whole number.)

Odessa, Inc., reports the following information concerning operations for the most recent month:
Actual (based
on actual of
495 units)
$85,820
Master Budget
(based on
budgeted 550
units)
$93,500
Sales revenue
Less
Manufacturing costs
12,422
10,110
7,540
4,537
13,200
12,100
9,350
Direct labor
Materials
Variable overhead
Marketing
Administrative
5,225
4,950
$44,825
4,950
Total variable costs
Contribution margin
$39,559
$46,261
$48,675
Fixed costs
Manufacturing
Marketing
4,260
9,180
8,755
$22,195
4,400
8,800
8,800
$22,000
Administrative
Total fixed costs
Operating profits
$24,066
$26,675
There are no inventories.
Required:
Prepare a profit variance analysis for Odessa, Inc. (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. Enter your final answers as a
whole number.)
ODESSA, INC.
Profit Variance Analysis
Master
Marketing and
Administrative Variance
Actual 495
Flexible
Manufacturing Variance
Sales Price Variance
Budget (Units) Sales Activity Variance Budget (550
Units)
Units)
Sales revenue
$
85,820
93,500
Variable costs:
Manufacturing costs:
Direct labor
12,422
13,200
Materials
10,110
12,100
Overhead
7,540
9,350
Marketing
4,537
5,225
Administrative
4,950
4,950
Contribution margin
Fixed costs:
2$
46,261
%24
$
48,675
Manufacturing
4,260
4,400
Marketing
9,180
8,800
Administrative
8,755
8,800
Operating profits
24
24,066
26,675

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.