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
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The variances are calculated in order to compare the standard result with the actual results.
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