Score out of 15 Question 4 Acme Industries Actual Master Bud

Score: out of 15 Question #4 Acme Industries Actual Master Budget 1,050 Units Revenues Variable manufacturing cos 93,625 $ 93,450 Variable marketing costs 18,832 18,375 Contribution margin Fixed manufacturing costs 44,500 $ 45,000 Fixed marketing costs Fixed administrative costs 27,500 25,000 Operating profit 1,070 s 235,400 236,250 122,943 $ 124,425 31,500 30,000 s 19,443 24,425 Acme Company prepared a budget last period that called for sales of 1,050 units at an average price of $225 per unit. Variable manufacturing costs were budgeted to be $89.00 per unit and variable marketing costs were budgeted to be $17.50 per unit. Total fixed manufacturing, marketing, and administrative costs were budgeted to be $45,000, $30,000, and $25,000, respectively. During the period, actual sales totaled 1,070 units (units produced equaled units sold), and actual revenues totaled $235,400. Actual variable manufacturing costs were $93,625, and actual variable marketing costs were $18,832. Total fixed manufacturing costs were $44,500, total fixed marketing costs totaled $31,500, and total fixed administrative costs were $27500 5 1) Calculate Master Budget Variances. Show your work. 2) Prepare a Flexible Budget. Show your work. 3) Calculate Sales Volume Variances. Show your work. 4) Calculate Flexible Budget Variances. Show your work. Note: Be sure to indicate whether each variance is favorable or unfavorable.

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	Actual	Master Budget	Master Budget Variance
Revenues	235400	236250	850	Unfavorable
Variable manufacturing costs	93625	93450	175	Unfavorable
Variable marketing costs	18832	18375	457	Unfavorable
Contribution margin	122943	124425	1482	Unfavorable
Fixed manufacturing costs	44500	45000	500	Favorable
Fixed marketing costs	31500	30000	1500	Unfavorable
Fixed administrative costs	27500	25000	2500	Unfavorable
Operating profit	19443	24425	4982	Unfavorable