Question

Allard Manufacturing Company established the following standard price and cost data. Sales price Unit $ 8.50 pet $ 3.30 per $2,200 total $ 500 total Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Init Allard planned to produce and sell 2,900 units. Actual production and sales amounted to 3,100 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. ALLARD MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,900 Units -

Answer 1

Allard Manufacturing Company Pro Forma Income Statement Master Budget 2900 Units Sales Revenue ( 2900 units x $8.50 per inits) $24.650 Less: Variable manufacturing cost (2900 imits $3.30 per unit) | $9.570 Total Contribution $15,080 Less: Fixed manufacturing cost $2.200 Less: Fixed and seling and administrative cost $500 Net income $12,380 b )

Allard Manufacturing Company Pro Forma Income Statement Flexible Budget 3100 Units Sales Revenue ( 3100 units x $8.50 per inits) $26,350 Less: Variable mamfacturing cost (3100 units x $3.30 per unit) $10.230 Total Contribution $16.120 Less: Fixed manufacturing cost $2,200 Less: Fixed and selling and administrative cost $500 Net income $13,420