question archive Vaughn Entertainment Corporation prepared a master budget for the month of November that was based on sales of 199,200 board games
Vaughn Entertainment Corporation prepared a master budget for the month of November that was based on sales of 199,200 board games
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Vaughn Entertainment Corporation prepared a master budget for the month of November that was based on sales of 199,200 board games. The budgeted income statement for the period is as follows. Sales Revenue $2,988,000 Variable expenses Direct materials $896,400 Direct labor 398.400 Variable overhead 597,600 Total variable expenses 1,892,400 Contribution margin 1,095,600 Fixed overhead 219,000 Fixed selling and administrative expenses 429,000 Total fixed expenses 648,000 Operating income $447,600 During November, Vaughn produced and sold 156,900 board games. Actual results for the month are as follows. During November, Vaughn produced and sold 156,900 board games. Actual results for the month are as follows. Sales Revenue $2,264,500 Variable expenses Direct materials $693,850 Direct labor 300,000 Variable overhead 460,000 Total variable expenses 1,453,850 Contribution margin 810,650 Fixed overhead 206,000 Fixed selling and administrative expenses 444,000 Total fixed expenses 650,000 Operating income $160,650 Taj Prepare a rexible puuget for November. (Rouna unit answers to z decimal places, e.g. 3.2. all other answers to u decimai pro e.g. 125.) Unit 156,900 games Sales revenue $ 15 $ 2353500 Less V: Variable expenses Direct material 4.5 706050 Direct labor 2 i 313800 i Variable overhead 3 i 470700 i Total variable expenses 9.5 1490550 i Contribution margin $ 5.5 862950 Less Fixed expenses Overhead 219000 i Call: ondadidint Annnn Selling and administrative 429000 i Total fixed expenses 648000 Operating income 214950 (b) Calculate Vaughn's static budget variance for November. (Round answers to 0 decimal places, e.g. 125. Enter all variance amounts as positive values. If variance is zero, select "Not Applicable" and enter O for the amounts.) Actual Results Static Budget Variance Unit Sales 156900 42300 i Unfavora Sales revenue $ 2264500 $ 723500 Unfavora Less V: Variable expenses Direct material 693850 i 202550 i Favorabl Direct labor 300000 i 98400 i Favorabl Grinblourhond 1600 13760 . Favorabl Total variable expenses 1453850 438550 Favorabl Contribution margin 810650 284950 i Unfavora Less V: Fixed expenses Overhead 206000 i 13000 i Favorabl Selling and administrative v 444000 i Unfavora Total fixed expenses 650000 2000 Unfavora Operating income $ 160650 $ 286950 i Unfavora e Textbook and Media Based on the available information, prepare a performance report for management. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Actual Results Flexible Budget Variance Unit Sales 156900 156900 Unfavorable Sales revenue $ $ Less V: Variable expenses Direct material Direct labor Variable overhead Total variable expenses Contribution margin Less Fixed expenses Flexible Budget Sales Volume Variance Static Budget able $ $ $ Direct labor Variable overhead Total variable expenses Contribution margin Less Fixed expenses Overhead Selling and administrative V Total fixed expenses Operating income $ $ $ A $ A V A ^ A A A
