60.1K

Verified Solution

Link Copied!

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) $4,492,000 Master Budget (based on budgeted orders for 480,000 units) $4,320,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing 1,440,000 251,000 674,100 371,500 S2,736,600 1,440,000 312,000 624,000 384,000 $2,760,000 and administrative Total variable costs Contribution margin Less Fixed costs 603,500 175,000 132,000 575,000 175,000 110,000 860,000 700,000 Marketing Administrative Total fixed costs Operating profits S 844,900 Required Prepare a sales activity variance analysis for Osage, Inc., (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) OSAGE, INC Sales Activity Variance Flexible Bud Sales Activity Variance Master 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 profits

Answer & Explanation Solved by verified expert

See Answer