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Pblem 6-27 (Part Level Submission)

Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 159,100 board games. The budgeted income statement for the period is as follows.

Sales Revenue $2,545,600

Variable expenses

Direct materials $700,040

Direct labor 381,840

Variable overhead 493,210

Total variable expenses 1,575,090

Contribution margin 970,510

Fixed overhead 258,100

Fixed selling and administrative expenses 504,300

Total fixed expenses 762,400

Operating income $208,110

During November, Barnes produced and sold 187,900 board games. Actual results for the month are as follows.

Sales Revenue $2,995,000

Variable expenses

Direct materials $813,060

Direct labor 467,460

Variable overhead 593,490

Total variable expenses 1,874,010

Contribution margin 1,120,990

Fixed overhead 274,300

Fixed selling and administrative expenses 504,300

Total fixed expenses 778,600

Operating income $342,390

arning