A company's master budget for October is to manufacture and sell 31,600 units, for a total sales revenue of $302,000, total variable costs of $156,640, and total fixed costs of $27,200. The company actually manufactured and sold 33,600 units, and generated $61,000 of operating income in October. The sales volume variance, in terms of operating income, for October was:(Do not round intermediate calculations.)
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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