Question

James Manufacturing had the following Information available for July: Flexible Budget Variance Flexible Budget Sales Activity Variance 4,000U Actual Results 14,000 ? Master Budget $11,000F Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $90,750 $96,000 ? $129,000 $5,250U ? ? $61,000 $6,000F $7,2000 $ 42,000 ? What was James's flexible budget contribution margin for July? Multiple Choice O $50,000 O $68,200 O $61.000 O $57,200

Answer 1

	Actual	Flexible budget variance	Flexible budget	Activity variance	Master budget
Units	14000		14000	4000 U	18000
Sales revenue	193000	11000 F	182000
Less:
Variable manufacturing cost	90750		96000	33000 F	129000
Variable marketing and administrative expense	41250	5250 U	36000	6000 F	42000
Contribution margin	61000		50000	7200 U

So answer is a) $50000