A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs. Fixed Budget Sales (8,000 x $730 per unit) Costs Direct materials Direct labor Indirect materials Supervisory salary Sales commissions Shipping Administrative salaries Depreciation Insurance Office rent Income Multiple Choice - $752,000. $618,000. Office equipment $1,076,000. $ 5,840,000 584,000 968,000 354,000 134,000 284,000 312,000 424,000 74,000 44,000 76,000 $ 2,586,000
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.
![A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs.
Fixed Budget
Sales (8,000 × $730 per unit)
Costs
Direct materials
Direct labor
Indirect materials
Supervisory salary
Sales commissions
Shipping
Administrative salaries
Depreciation - Office equipment
Insurance
Office rent
Income
Multiple Choice
O
O
O
$752,000.
$618,000.
$1,076,000.
$ 5,840,000
584,000
968,000
354,000
134,000
284,000
312,000
424,000
74,000
44,000
76,000
$ 2,586,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f3ab4c9-5284-4fe9-86b7-64f76d3d9991%2F7c72cb23-ad30-4800-85c6-39240ef011ce%2Fe03685q_processed.jpeg&w=3840&q=75)
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