5. XYZ Industries, has the following information to be used in preparing its flexible budget: . The activity driver is the number of customers. . The expected revenue per customer is $3.8 Dark expected to serve 30,000 customers for the month when preparing the planning budget The budgeted costs are as follows: o Wages and salaries is $31,200 per month plus $1.4 per customer served o Insurance is $8,500 per month o Supplies are $0.7 per customer served o Miscellaneous expenses are $3,700 per month plus 50.10 per customer served • XYZ actually served 29,000 customers during the month . • . Actual results were as follows: Revenues were $106,600 Supplies were $21,000 o o o Insurance was 8,500 o Misc. expenses were $6,800 What is the total profit the company would expect in the flexible budget for the month?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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