Question

James Manufacturing has the following Information available for July Flexible Budget Variance Flexible Budget Sales Activity Variance 2,0000 Actual Results 16,000 ? Master Budget $12,300F ? Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,000 $ 101,000 ? $139,000 ? $66,000 $ 9,0000 ? $9,700F $7,700U $ 47,000 ? ? What was James's actual sales revenue for July? Multiple Choice 0 O $216.000 0 $204.300 0 $261.700 0 $192.000

Answer 1

We need to first calculate the Variable marketting and administrative costs and then the Balancing figure shall be Actual sales. Variable Marketing and Administrative Cost for flexible budget Master budget - Sales Activity Variance (F) 47,000+9,700 56,700 Variable Marketing and Administrative Cost for flexible budget Flexible budget+Flexible budget variance (U) 56,700+9,000 65,700 Actual sales Contribution margin + Variable manufactiring costs+Variable marketing and administrative 66,000+ 92,000 + 65,700 223,700