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# (Solved): Target Company's actual results for the period were: The company planned to produce and sell 375,0 ...

Target Company's actual results for the period were: The company planned to produce and sell 375,000 at each. At that volume, variable Manufacturing costs were budgeted at , and variable Marketing \& Admin costs were budgeted at each. In addition, the company expected an operating profit of . a.) Refer to Target Company, create the Master/Planning Budget. b.) Refer to Target Company, prepare the Flexible Budget. c.) Calculate the Sales Price Variance. d.) Calculate the Sales Volume Variance. e.) Calculate the Variable Manufacturing Cost Variance. f.) Calculate the Variable Marketing \& Admin Cost Variance.

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Create the Master/Planning Budger

a) Master/Planning Budget:

Sales:
Volume: 375,000 units
Price: $6 per unit Total Sales Revenue: 375,000 units *$6 = $2,250,000 Variable Costs: Manufacturing: Volume: 375,000 units Cost per unit:$2.50
Total Manufacturing Costs: 375,000 units * $2.50 =$937,500

Volume: 375,000 units
Cost per unit: $2.00 Total Marketing & Admin Costs: 375,000 units *$2.00 = $750,000 Total Variable Costs:$937,500 (Manufacturing) + $750,000 (Marketing & Admin) =$1,687,500

Fixed Costs:
Manufacturing: $400,000 Marketing & Admin:$32,000
Total Fixed Costs: $400,000 +$32,000 = $432,000 Operating Profit:$62,500

Master/Planning Budget:
Sales Revenue: $2,250,000 Variable Costs:$1,687,500
Fixed Costs: $432,000 Operating Profit:$62,500

As per information given all budgetary tables shown

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