Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and,...
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Accounting
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:
Actual (based on actual orders for 450,000 units)
Master Budget (based on budgeted orders for 480,000 units)
Sales revenue
$
4,487,000
$
4,320,000
Less
Variable costs
Materials
1,680,000
1,680,000
Direct labor
218,000
288,000
Variable overhead
627,400
576,000
Variable marketing and administrative
445,000
456,000
Total variable costs
$
2,970,400
$
3,000,000
Contribution margin
$
1,516,600
$
1,320,000
Less
Fixed costs
Manufacturing overhead
913,800
885,000
Marketing
288,000
288,000
Administrative
198,000
174,000
Total fixed costs
$
1,399,800
$
1,347,000
Operating profits
$
116,800
$
-27,000
Required:
Prepare a flexible budget for Osage, Inc.(Do not round intermediate calculations.)
CoursHeroTranscribedText: Required: Prepare a flexible budget for Osage, Inc. (Do not round intermediate calculations.) OSAGE, INC. Flexible Budget Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profit (loss)
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