5.3 Using the following per-unit and total amounts, prepare a flexible budget at the 17,000-, 18,000-, and 19,000-unit levels of production and sales for Natural Products Inc.: Selling price per unit............................................ $90.00 Direct materials per unit ........................................ $34.00 Direct labor per unit............................................. $ 9.50 Variable factory overhead per unit.............................. $17.50 Fixed factory overhead.......................................... $95.000 Variable selling and administrative expense per unit . . . . . .$15.00 Fixed selling and administrative expense ...................... $90,000
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.
5.3
Using the following per-unit and total amounts, prepare a flexible budget at the 17,000-, 18,000-, and 19,000-unit levels of production and sales for Natural Products Inc.:
Selling price per unit............................................ $90.00
Direct materials per unit ........................................ $34.00
Direct labor per unit............................................. $ 9.50
Variable factory
Fixed factory overhead.......................................... $95.000
Variable selling and administrative expense per unit . . . . . .$15.00
Fixed selling and administrative expense ...................... $90,000
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