The following information is provided concerning the operations of Tolstoy Corporation for the current period: Actual (based onactual of 360 units) Master Budget (basedon budgeted 400 units) 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

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 on budgeted 400 units) Sales...

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 on budgeted 400 units)
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

Answered Same DayDec 25, 2021

Robert answered on Dec 25 2021

129 Votes