A company's master budget for October is to manufacture and sell 30,900 units, for a total sales revenue of $288,000, total variable costs of $167,490, and total fixed costs of $25,800. The company actually manufactured and sold 32,900 units, and generated $73,800 of operating income in October. The total flexible-budget variance in October was: (Do not round intermediate calculations.) Multiple Choice $7,800 unfavorable. $48,000 unfavorable. $5,672 unfavorable. $28,710 unfavorable. $40,328 unfavorable.
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
The total flexible-
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$7,800 unfavorable.
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$48,000 unfavorable.
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$5,672 unfavorable.
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$28,710 unfavorable.
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$40,328 unfavorable.
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