The master budget at Monroe Manufacturing last period called for sales of 43,000 units at $52 each. The costs were estimated to be
$36 variable per unit and $534,000 fixed. During the period, actual production and actual sales were 46,000 units. The selling price
was $51 per unit. Variable costs were $38 per unit. Actual fixed costs were $525,000
Required:
Prepare a sales activity 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
either option.
Monroe Manufacturing
Sales Activity Variance
Flexible Budget Sales Activity Variance Master Budget
Sales revenue
Less
Variable costs
Contribution margin
Less
Fixed costs
Operating profits