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

Exercise 43

Prepare Flexible Budget

The following information is provided concerning the operations of Tolstoy Corporation for the current period:

	Actual (based on actual of 360 units)	Master Budget (based
Sales revenue	$ 55,200	$ 60,000
Less
Manufacturing costs
Direct labor	8,520	9,000
Materials	7,200	8,400
Variable overhead	4,920	6,000
Marketing	3,180	3,600
Administrative	3,000	3,000
Total variable costs	$26,820	$30,000
Contribution margin	$28,380	$30,000
Fixed costs
Manufacturing	2,916	3,000
Marketing	6,240	6,000
Administrative	5,976	6,000
Total fixed costs	$15,132	$15,000
Operating profits	$13,248	$15,000

There are no inventories.

Required

Prepare a flexible budget for Tolstoy Corporation.