Abuzaki traders LLC the expenses budgeted for production of 1000 units in a factory furmished below Raw material cost OMR 700 per unit Direct labour cost OMR 250 per unit Variable overheads OMR 200 per unit Selling expenses (20% Fixed) OMR 130 per unit Administration expenses (OMR 200,000) OMR 200 per unit Find out the total variable cost for production of 800 units assuming administrative expenses are rigid for all levels of production. a. OMR 1,003,200 b. OMR 1,229,200 c OMR 978,400 d. None of these
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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