Prepare Flexible Budget
Hayden Corporation provides you with the following information for the month of June:
|
Actual (based on |
Master Budget (based |
|
actual sales of |
on budgeted sales of |
|
21,000 units) |
20,000 units) |
Sales revenues |
$1,155,000 |
$1,200,000 |
Less |
|
|
Variable costs |
|
|
Direct material |
147,000 |
120,000 |
Direct labor |
136,500 |
160,000 |
Variable overhead |
158,500 |
160,000 |
Marketing |
51,000 |
50,000 |
Administration |
47,000 |
50,000 |
Total variable costs |
$ 540,000 |
$ 540,000 |
|
|
|
Contribution margin |
$ 615,000 |
$ 660,000 |
Fixed costs |
|
|
Manufacturing |
256,000 |
250,000 |
Marketing |
57,000 |
50,000 |
Administration |
203,000 |
$ 200,000 |
|
|
|
Total fixed costs |
$ 516,000 |
$ 500,000 |
Operating profits |
$ 99,000 |
$ 160,000 |
Required
Prepare a flexible budget for Hayden Corporation for June.