Acompany produces 3 products with the following budget information available: A B C SALES $14 $15 $18 STANDARD FULL COST $10 $10 $10 BUDGET PRODUCTION 10,000UNITS 13,000UNITS 9,000UNITS The actual sales price and productions were: A B C sales price $14.5 $15.15 $19 Budget production 9,500units 13,500units 8,500units you are required to calculate i) The sales quantity profit volume variance
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.
Acompany produces 3 products with the following budget information available:
A B C
SALES $14 $15 $18
BUDGET PRODUCTION 10,000UNITS 13,000UNITS 9,000UNITS
The actual sales price and productions were:
A B C
sales price $14.5 $15.15 $19
Budget production 9,500units 13,500units 8,500units
you are required to calculate
i) The sales quantity profit volume variance
The variances are calculated in order to compare the standard result with the actual results.
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