Question

James Manufacturing had the following information available for July Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin What was James's master budget contribution margin? Multiple Choice $52,800 $45,800 $39,600 Actual Results 13,400 ? $ 91,750 ? $ 52,800 Flexible Budget Variance $ 13,400 F ? $ 3,450 U ? Flexible Dodget ? ? $ 95,000 ? ? Sales Activity Variance 3,800 U ? $ 4,200 F $ 6,200 U Nester Budget ? ? $ 130,200 $ 30,400 ?

          James Manufacturing had the following information available for July
Units
Sales revenue
Less:
Variable manufacturing costs
Variable marketing and administrative
Contribution margin
What was James's master budget contribution margin?
Multiple Choice
$52,800
$45,800
$39,600
Actual
Results
13,400
?
$ 91,750
?
$ 52,800
Flexible Budget
Variance
$ 13,400 F
?
$ 3,450 U
?
Flexible
Dodget
?
?
$ 95,000
?
?
Sales Activity
Variance
3,800 U
?
$ 4,200 F
$ 6,200 U
Nester Budget
?
?
$ 130,200
$ 30,400
?

Show more…

James Manufacturing had the following information available for July
Units
Sales revenue
Less:
Variable manufacturing costs
Variable marketing and administrative
Contribution margin
What was James's master budget contribution margin?
Multiple Choice
52,80045,800
39,600
Actual
Results
13,400
? 91,750
?
52,800
Flexible Budget
Variance 13,400 F
?
3,450 U
?
Flexible
Dodget
?
? 95,000
?
?
Sales Activity
Variance
3,800 U
?
4,200 F 6,200 U
Nester Budget
?
?
130,200 30,400
?

Added by Jasmin C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Jennifer Stoner

Step 1

The flexible budget variance is given as 3.80U, which means that the actual units sold were 3.80 units more than the flexible budget. To calculate the flexible budget contribution margin, we need to multiply the flexible budget units by the contribution margin Show more…

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James Manufacturing had the following information available for July: Actual Results: Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin 13,400 $91,750 $95,000 $130,200 $30,400 Flexible Budget Variance: Flexible Budget 7 Variance 3.80U What was James's master budget contribution margin? Multiple Choice $52,800 $45,800 $39,600

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