A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: Direct materials $50 per unit Direct labor $40 Variable manufacturing overhead $5 per unit per unit Fixed manufacturing Overhead $40,000 per year Product X sells for $200 per unit. Assume no beginning or ending inventories. The Gross Profit for selling 15 ProductX units is
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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