The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500

The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month....

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