Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 46

Prepare Flexible Budget

Hayden Corporation provides you with the following information for the month of June:

	Actual (based on actual sales of 21,000 units)	Master Budget (based on budgeted sales of 20,000 units)
Sales revenues	$1,155,000	$1,200,000
Less
Variable costs
Direct material	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	$ 540,000	$540,000
Contribution margin	$ 615,000	$ 660,000
Fixed costs
Manufacturing	256,000	250,000
Marketing	57,000	50,000
Administration	203,000	$ 200,000
Total fixed costs	$ 516,000	$ 500,000
Operating profits	$ 99,000	$ 160,000

Required

Prepare a flexible budget for Hayden Corporation for June.

Step 1 of 2

Flexible budget for company H is shown below