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Homework answers / question archive / Osage, Inc
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 450000 units) Master budget (based on budgeted order for 480000 units)
Sales revenue $4,485,000 $4,320,000
Less
Variable costs Materials 1,536,000 1,536,000
Direct labor 218,000 288,000
Variable overhead 675,900 624,000
Variable marketing and administrative 395,500 408,000
Total variable costs $2,825,400 $2,856,000
Contribution margin $1,659,600 $1,464,000
Less
Fixed costs Manufacturing overhead 653,100 625,000
Marketing 175,000 175,000
Administrative 145,500 122,500
Total fixed costs $ 973,600 $ 922,500
Operating profits $ 686,000 $ 541,500
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.)
