Honeywell manufacturer of fireplaces, had planned to produce and
sell 2,500 units at $105.00 per unit. Budgeted variable
manufacturing costs per unit are $20.00. Honeywell pays its
salespeople a 5% sales commission, which is the only non-variable
manufacturing cost for the company. Fixed costs are budgeted as
follows: manufacturing, $40,000 and marketing, $30,000.
Actual financial results for the period were as follows. Sales
volume was up at 2,750 units sold and actual sales revenue for the
period was $260,000. Fixed...