The Ornate Company Has the Following Information Pertaining to the Month

question 54

Essay

The Ornate Company has the following information pertaining to the month of March:
$\begin{array}{lrr}\text { Units of output, actual } & 21,000 \\\text { Fixed costs, actual } & \$ 497,000 \\\text { Operating profit, master budget } & \$ 220,000 \\\text { Sales price variance } & \$ 84,000\mathrm{U} \\\text { Beginning and ending inventories } & 0 \\\text { Sales volume variance, revenue } & \$ 300,000 \mathrm{U} \\\text { Budgeted selling price per unit } & \$ 100 \\\text { Variable costs, master budget } & \$ 1,680,000 \\\text { Contribution margin, actual } & \$ 516,000\end{array}$

Required:
Prepare a performance report for March including columns for the (a) actual results, (b) flexible budget, (c) flexible budget variance, (d) master budget, and (e) sales activity variance.

Understand the steps and legal implications involved in partnership termination.

Comprehend the nature of fiduciary relationships within partnerships.

Recognize how partnerships are treated under federal tax laws.

Differentiate between the various types of partnerships and their specific characteristics.

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Definitions:

Direct Labor Hours

The total time workers spend on creating a product or service, often used as an allocation base in cost accounting.

Overhead Assigned

The process of allocating indirect costs, such as utilities or rent, to specific cost objects like products or departments.

Allocation Base

A measure or statistic used to distribute costs among different departments or activities, typically related to cost accounting practices.

Departmental Overhead Rate

The speed at which overhead expenses are distributed to goods or services according to activities specific to each department.