Question

James Manufacturing has the following Information available for July Actual Results 14, eee Flexible Budget variance Flexible Budget Sales Activity Variance 4, eseu Master Budget $11,080F Units sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $90,75e $96, eee ? $129,999 $ 5,25eu $ 42,082 $6,880F $7, 2000 $61,082 What was James's actual sales revenue for July CHE 0 391000 0 231000 5231

Answer 1

	Actual results	Flexible budget variance	Flexible budget	Sales activity variance	Master budget
Units	14,000	0	14,000	4,000 U	10,000
Sales revenue	$193,000 (90,750+41,250+61,000)	$11,000 F	$182,000 (193,000-11,000)	46,200 U (33,000+6,000+7,200)	$228,200 (182,000+46,200)
Less:
Variable manufacturing costs	90,750 (96,000-5,250)	5,250 F	96,000	33,000 F (129,000-96,000)	129,000
Variable marketing and administrative costs	41,250 (36,000+5,250)	5,250 U	36,000 (42,000-6,000)	6,000 F	42,000
Contribution margin	$61,000	$11,000 F	$50,000 (61,000-11,000)	7,200 U	$57,200 (50,000+7,200)

James actual sales for July is $193,000