A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows: Product A£ per unit Materials Labour (£16 per hour) 6 32 Production overhead of £60,000 is absorbed on a labour-hour basis. The budgeted output is 8,000 units of product A. The company adds a mark up of 20% to total production cost in order to determine its unit selling prices. What is the selling price per unit of product A? OA£54.60 OB. OC. £19.50 £45.43 O D. £25.67
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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