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My co. provides the following fixed budget data for the year:
Sales (20000 units)
$600000
Cost of sales:
Direct materials
200000
Direct labor
160000
Variable overhead
60000
Fixed overhead
80000
500000
Gross profit
100000
Operating expenses:
Fixed
12000
Variable
40000
52000
Income from operations
48000
The company's actual activity for the year follows:
Sales (21000 units)
651000
COGS
231000
168000
73500
77500
550000
101000
39500
51500
49500
Prepare a flexible budget performance report for the year using the contribution margin format.
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Capstone Research Project
Discuss the costs of quality associated with the mass production of a product. At the least, address the following question.
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