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Problem 11-42 Student Name: _________________
Class:_________________________
Lakemaster Company
Flexibile Budget
For the Month of June
Revenue *
Deduct: Variable costs:
Direct material *
Direct labor *
Variable overhead *
Variable selling *
Total variable costs *
Contribution margin *
Deduct: Fixed costs:
Fixed overhead *
Fixed general and administrative *
Total Fixed Expenses *
Operating income *
Units * *
Revenue * *
Variable costs
Direct material * * * *
Direct labor * * * *
Variable overhead * * * *
Variable selling * * * *
Deduct: Total variable costs * * * *
Contribution margin * * * *
Fixed costs:
Fixed overhead * *
Fixed general and administrative * * * *
Deduct: Total fixed costs * * * *
Operating income * * * *
Lakemaster Company
Flexible-Budget Variances
For the Month of June
3.
Student Name: Instructor
Class: McGraw Hill/Irwin
DATA INPUT
Master Budget Actual Variance
Units sold 5,000 4,800 200 U
Unit costs:
Direct material 90$
Direct labor 66$
SOLUTION
1) Flexible budget for the month of May, based on 4,800 units, showing separate variable cost budget is as follows:
Lakemaster Company
Flexibile Budget
For the Month of June
Revenue 4,800 5,000 = 1,728,000$
Deduct: Variable costs:
2) Flexible-budget variances are as follows:
Flexible Flexible-Budget
Actual Budget Variance
Units 4,800 4,800 -
Lakemaster Company
Operating Results
For the Month of June
For the Month of June
Lakemaster Company
Flexible-Budget Variances
3. The revised budget and variance data are likely to have the following impact on Al
Richmond's behavior:
Richmond is likely to be encouraged by the revised data, since the major portion of
