Odessa Inc reports the following information concerning oper

Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on based on Sales revenue Less 112 500 Direct labor 14,998 16,000 10,950 6,512 6,000 15.750 18.000 12.750 7 200 Variable overhead 54,46059700 52.800 Total variable costs Contribution margin 50,390 Flxed costs Manufacturing 5,850 2,388 11,963 6.000 12.000 12.000 Total foxed costs Operating profits 5 30 20130000 $ 22800 20,189 There are no inventories. Required Prepare a sales activity variance analysis for Odessa, Inc. (Do not round intermediate calculations. 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.) Sales Activity Variance Flexible Budget (based on actual of 675 units Master Budget based on budgeted 750 Sales Activity Variance Sales revenue 112 500 Variable costs: Direct labor Materials Variable overhead Marketing 15 750 12, 59,700 Total variable costsS Contribution margin 52.800 Fixed costs Total fxed costs Operating profits 30,000 22.800

Solution

Workings

	Flexible Budget 675 Units	Sales Activities Variance	Master Budget
Sales Revenue	101250	11250	U	112500
Variable Cost
Manufacturing Cost
Direct Labor	14175	1575	F	15750
Materials	16200	1800	F	18000
Variable Overhead	11475	1275	F	12750
Marketing	6480	720	F	7200
Administrative	5400	600	F	6000
Total Variable Cost	53730	5970	F	59700
Contribution Margin	47520	5280	F	52800
Fixed Cost
Manufacturing	6000	0		6000
Marketing	12000	0		12000
Administrative	12000	0		12000
Total Fixed Costs	30000	0		30000
Operating Profit	17520	5280	U	22800