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