Mountain Manufacturing: Budget and Performance Report
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Mountain Manufacturing had established the following budget information:
1. Finish the missing information :
Sales in Units .
Units 100,000 150,000 200,000
Sales $1,800,000 ______________ ______________
Less variable expenses:
Raw Materials 300,000 ______________ ______________
Direct Labor 350,000 ______________ ______________
Manufacturing overhead 225,000 ______________ ______________
Selling and Administration 90,000 ______________ ______________
Total variable expense 725,000 ______________ ______________
Contribution Margin 965,000 ______________ ______________
Less Fixed Expense:
Manufacturing Overhead 200,000 ______________ ______________
Selling and Administration 150,000 ______________ ______________
Total fixed expense 350,000 ______________ ______________
Net Operating Income $ 615,000 ______________ ______________
Actual Data for the year is as follows:
Units sold 190,000
Sales $3,400,000
Variable expenses:
Raw Materials 574,000
Direct Labor 662,000
Manufacturing overhead 429,000
Selling and Administration 170,000
Fixed Expense:
Manufacturing Overhead 203,000
Selling and Administration 151,000
2. Using the information in Part 1, prepare a performance report for the year for Mountain Manufacturing:
Headings _Budget_______ __Actual_______ _Variance______
Sales $_____________ $_____________ $_____________
Less variable expenses:
Raw Materials ______________ ______________ ______________
Direct Labor ______________ ______________ ______________
Manufacturing overhead ______________ ______________ ______________
Selling and Administration ______________ ______________ ______________
Total variable expense ______________ ______________ ______________
Contribution Margin ______________ ______________ ______________
Less Fixed Expense:
Manufacturing Overhead ______________ ______________ ______________
Selling and Administration ______________ ______________ ______________
Total fixed expense ______________ ______________ ______________
Net Operating Income $_____________ $_____________ $_____________
(See attached file for full problem description)
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Solution Summary
Provides the missing information for Budget and prepares a performance report. The less variable expenses are examined.
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Managerial Accounting
Mini Project 4
Mountain Manufacturing had established the following budget information:
1. Finish the missing information (10 points):
Sales in Units .
Units 100,000 150,000 200,000
Sales $1,800,000 ______________ ______________
Less variable expenses:
Raw Materials 300,000 ______________ ______________
Direct Labor 350,000 ______________ ______________
Manufacturing overhead 225,000 ______________ ______________
Selling and Administration 90,000 ______________ ______________
Total variable expense 725,000 ______________ ______________
Contribution Margin 965,000 ______________ ______________
Less Fixed Expense:
Manufacturing Overhead 200,000 ______________ ______________
Selling and Administration 150,000 ______________ ______________
Total fixed expense ...
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