Question

Odessa, Inc., reports the following information concerning operations for the most recent month: Master Bud based on budgeted 500 units) $85,000 Actual (based on actual I of 450 units) $77,360 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative 11,242 9,020 6,210 4,076 4,000 $34,548 $42,812 12,000 11,000 8,000 4,750 4,000 $39,750 $45,260 Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative 3,855 8,388 7,963 $20,206 $22,606 4,000 8,000 8,000 $20,000 $25,250 Total fixed costs Operating profits There are no inventories. Required: Prepare a profit variance analysis for Odessa, Inc. (Do not round intermediate calculations Indicate the effect of each variance by selecting "F for favorable, or "U" for unfavorable. I there is no effect, do not select either option.) t There are no inventories. Required Prepare a profit varlance analysis for Odessa, Inc. (Do not round Intermedlate calculations. Indicate the offect of each varlance by se not soloct elther option.) cting "P for favorable, or "u" Profit Variance Analysis Actual 450 Units) Marketing and Sales Activity Bud Manufacturing Varlance Flexible Sales Price Variance Budget (Unit Master Administrative Varlance Sales revenue $ 77,360 $ 85,000 Variable costs Ma Direct labor Materials Overhead Marketing Administrative 11,242 9,020 6,210 4.076 4,000 12,000 11,000 8,000 4,750 4,000 $45,250 Contribution margin Fixed costs: 42,812 Manufacturing Marketing Administrative 3,855 8388 7,963 S 22,605 $ 4,000 8,000 8,000 $ 25,250 Operating profit References eBook & Resources Worksheet Difficulty 2 Medlum Learning Obicive 18-0s Prepaa and use s

Answer 1

Working Notes: 1. Calculation Sales revenue and Variable Cost for Flexible Budget Master Budget Cost per unit Flexible Budget For 500 Units for 450 Units | B × 450 B = A/500 Sales revenue Variable costs: 85,000 170.00 76,500 Manufacturin Direct Labor Materials Overhead Marketin Administrative 12,000 11,000 8,000 4,750 4,000 24.00 22.00 16.00 9.50 8.00 10,800 9,900 7,200 4,275 3,600