Question

James Manufacturing had the following information available for July: Actual Results 15,000 2 Flexible Budget Variance Flexible Budget ? 2 Sales Activity Variance 3,0000 Master Budget 2 2 $18, 250F 2 Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,250 $102,000 2 $141,000 ? $ 9,750U 2 $ 48,000 $3,7507 $7,8000 $ 67,000 ? ? What was James's master budget sales revenue? Multiple Choice $195,000 $234,000 26

Answer 1

Computation:

Particulars	Actual Results	Flexible Budget Variance	Flexible Budget	Sales Activity Variance	Master Budget
Units	15,000		15,000	3,000U	18,000 (15,000+3,000)
Sales	$213,250	$18,250F	$195,000	$50,550U	$245,550
Less:
Variable Manu. Costs	$92,250	$9,750F	$102,000	$39,000F	$141,000
Variable Marketing & Admin	$54,000	$9,750U	$44,250	$3,750F	$48,000
Contribution Margin	$67,000	$18250F	$48,750	$7,800U	$56,550

Option 1 - $195,000

Option 2 - Only A is false

31. Option 4 - The Market Price Charged to outside customers less costs saved by transferring internally.