Question

Assignment has six (6) different requirements to it. All of the data is in an excel file which I can submit. One of the questions is below.

Prepare Contribution Margin Statements from the actual and budgeted 2018 Income Statements given and place in proper column of the Flexible Budget

Mike's Auto Center20182018

ActualBudget

Sales $       1,060,500 $         1,101,600

COGS

Material $          475,250 $            511,020

Labor $          224,680 $            233,325

Disposal $             35,000 $               35,190

Rent $             42,000 $               42,000

Utilities $             22,000 $               24,000

Supervision $             50,000 $               50,000

Depreciation $             50,000 $               50,000

Maintenance $             12,000 $                 7,000

Total COGS $          910,930 $            952,535

Gross Profit $          149,570 $            149,065

SG&A Expenses

Insurance $             12,000 $               10,000

Computer/Phone $               3,250 $                 3,000

Office Supplies $               2,800 $                 3,000

Advertising $               6,000 $                 5,000

Total SG&A Expenses $             24,050 $               21,000

Operating Income $          125,520 $            128,065

Answer 1

Answer is given below

Your format may be slightly different. please try to fit in below numbers in the format

Budget $1,101,600 Flexible Budget Actual Sales $1,060,500 Less: Variable Cost Material $475,250 Labor $224,680 Total Variable Cost $699,930 Contribution $360,570 Less: Fixed Cost Disposal $35,000 Rent $42,000 Utilities $22,000 Supervision $50,000 Depreciation $50,000 Maintenance $12,000 Total manufacturing Overheads $211,000 $511,020 $233,325 $744,345 $357,255 (Sales - Variable Cost) $35,190 $42,000 $24,000 $50,000 $50,000 $7,000 $208,190 SG & A Expenses Insurance Computer/Phone Office Supplies Advertising Total SG & A Expenses $12,000 $3,250 $2,800 $6,000 $24,050 $10,000 $3,000 $3,000 $5,000 $21,000 Operating Income $125,520 $128,065 Contribution - Manufacturing OH-SG & A