Required:

Prepare a profit variance analysis for Odessa, 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.)

 
 

Transcribed Image Text:

Odessa, Inc., reports the following information concerning operations for the most recent month: Master Budget (based on budgeted 550 units) $93.500 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits Actual (based on actual of 495 units) $85.890 12,440 10,200 6.440 4,602 4.400 $38.082 $47,808 4,255 9,182 8,760 $22,197 $25,611 13,200 12,100 8.250 5.280 4,400 $43,230 $50,270 4,400 8,800 8,8 $22,000 $28,270 Sales revenue Variable costs: Manufacturing Direct labor Materials Overhead Marketing Administrative Contribution margin Fixed costs: Manufacturing Marketing Administrative Operating profit Actual 495 Units) $ 85,890 12,440 10,200 6,440 4.602 4,400 S 47,808 4,255 9,182 8,760 S 25,611 Manufacturing Variance ODESSA, INC. Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget (Units) S S 0 0 Sales Activity Variance Master Budget (550 Units) $ $ $ $ 93,500 13,200 12,100 8,250 5,280 4,400 50,270 4,400 8,800 8,800 28,270 Odessa, Inc., reports the following information concerning operations for the most recent month: Master Budget (based on budgeted 550 units) $93.500 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits Actual (based on actual of 495 units) $85.890 12,440 10,200 6.440 4,602 4.400 $38.082 $47,808 4,255 9,182 8,760 $22,197 $25,611 13,200 12,100 8.250 5.280 4,400 $43,230 $50,270 4,400 8,800 8,8 $22,000 $28,270 Sales revenue Variable costs: Manufacturing Direct labor Materials Overhead Marketing Administrative Contribution margin Fixed costs: Manufacturing Marketing Administrative Operating profit Actual 495 Units) $ 85,890 12,440 10,200 6,440 4.602 4,400 S 47,808 4,255 9,182 8,760 S 25,611 Manufacturing Variance ODESSA, INC. Profit Variance Analysis Marketing and Administrative Variance Sales Price Variance Flexible Budget (Units) S S 0 0 Sales Activity Variance Master Budget (550 Units) $ $ $ $ 93,500 13,200 12,100 8,250 5,280 4,400 50,270 4,400 8,800 8,800 28,270

Answer rating: 100% (QA)

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