akota Co. has prepared the following flexible budget for the coming year. The budgeted level of activity is 5,000 units. Sales 125,000 Direct material 37,5000 Direct Labour 30,000 Variable overheads 15,000 Fixed overheads 20,000 Profit 22,500 Sales Direct material Direct labour Variable overheads Fixed overheads Profit If the budget is flexed to a level of activity of costs be? a) £102,500 b) £110,000 c) £143,750 d) £126,000
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.
Dakota Co. has prepared the following flexible budget for the coming year. The budgeted level of activity is 5,000 units.
Sales 125,000
Direct material 37,5000
Direct Labour 30,000
Variable
Fixed overheads 20,000
Profit 22,500
Sales
Direct material Direct labour Variable overheads Fixed overheads Profit
If the budget is flexed to a level of activity of costs be?
a) £102,500
b) £110,000
c) £143,750
d) £126,000
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