Exercise 16-33 (Algo) Sales Activity Variance (LO 16-3) 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: 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 Master Budget (based on Actual (based on budgeted orders actual orders for for 355,000 397,600 units) $7,554,400 2,611,600 232,000 1,189,600 864,000 units) $ 7,100,000 1,578,000 495,400 318,000 $2,391,400 $ 265,800 2,320,000 212,000 1,058,000 774,000 $4,897,200 $4,364,000 $2,657,200 $ 2,736,000 1,600,000 480,000 345,000 $2,425,000 $ 311,000

Exercise 16-33 (Algo) Sales Activity Variance (LO 16-3) 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: 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 Master Budget (based on Actual (based on budgeted orders actual orders for for 355,000 397,600 units) $7,554,400 2,611,600 232,000 1,189,600 864,000 units) $ 7,100,000 1,578,000 495,400 318,000 $2,391,400 $ 265,800 2,320,000 212,000 1,058,000 774,000 $4,897,200 $4,364,000 $2,657,200 $ 2,736,000 1,600,000 480,000 345,000 $2,425,000 $ 311,000

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Description: Please do not give solution in image format thanku Required:Prepare a sales activity variance analysis for Fournier Fixtures.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 24BEA: Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page....

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
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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: 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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits $ Actual 7,448,000 Required: Prepare a profit variance analysis for Fournier Fixtures 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…
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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: 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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Fournier Fixtures Sales Activity Variance Flexible Budget Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U"…
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: 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 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Actual (based on actual orders for 445,200 units) $ 8,458,800 Fournier Fixtures Sales Activity Variance Flexible Budget 2,710,200 249,000 1,271,200 898,000 $ 5,128,400 $ 3,330,400 1,731,000 668,800 471,000 $ 2,870,800 $ 459,600 Required: Prepare a sales…
Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses $ 36.00 45.00 18.00 $ 99.00 Fixed Cost per Month $ 210,000 $ 120,000 Variable Cost per Unit Sold $ 13.00 $ 4.00 The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: Variable overhead rate variance a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this…