Archer Pro manufactures two models of sport bows, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect manufacturing labor costs increase with direct manufacturing labor costs. Equipment and maintenance costs increase with the number of machine-hours, and facility rent is paid per square foot. Capacity of the facility is 10,000 square feet, and Archer Pro is using only 75% of this capacity. Archer Pro records the cost of unused capacity as a sepa- rate line item and not as a product cost. For the current year, Archer Pro has budgeted the following: Archer Pro Budgeted Costs and Activities for the Year Ended December 31, 2017 $ 450,000 Direct materials-Basic bows Direct materials-Deluxe bows 320,000 Direct manufacturing labor-Basic bows Direct manufacturing labor-Deluxe bows Indirect manufacturing labor costs Machine setup costs Equipment and maintenance costs Facility rent 155,000 195,000 105,000 60,000 264,000 250,000 $1799,000 Total Other budget information follows: Basic Deluxe 5,000 18,000 Number of bows 10,000 Machine-hours 15,000 Number of setups Square footage of production space used 500 300 3,500 4,000

Q: better system for performance analysis?

A: A flexible budgeting system is a type of budgeting which is based on various sales volumes and it…

Q: How can budgeting be used for strategic allocation of resources?

A: In budgeting, standards are set for the next period so that actual performance could be directed…

Q: a standard

A: A budget usually refers to a department's or a company's projected revenue, costs, or expenses. A…

Q: 3. Explain how a flexible budget is used?

A: A flexible budget is a budget that adjusts to a company’s operation or volume levels.

Q: hat is a fixed budgett

A: Introduction: A budget is a forecast of income and expenses for a specific future time period that…

Q: What is a self-imposed budget?

A: Budget:   It is a statement of estimated revenue and expenditure for a specific period.

Q: What is a budgeting cycle? Explain?

A:

Q: Should actual or budgeted service department costs be allocated? Why?

A: Service department:   A service department is a division in an organization that is not involved…

Q: A flexible budget has which of the following characteristics?

A: A flexible budget is a dynamic financial plan that adjusts to changes in activity levels or other…

Q: What is a flexible budget? Explain? Give example?

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: what is dysfuncional behavior and budgetary slack？

A: Dysfunctional behavior is the behavior of the individual that is not in conformity with the…

Q: How do flexible budgets differ from static budgets?

A: Flexible Budgets: Flexible budgets are prepared for various levels of activities or outputs. This…

Q: Why does the economic-enterprise budget include depreciation or capital recovery and fixed costs?

A: A budget is the estimation of costs, expenses and incomes. Fixed costs are those costs which lasts…

Q: What are the benefits of a master budget?

A: Master Budget:The master budget is the core budget that describes the full process of budget. This…

Q: 11. Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled…

A: A sunk cost is the cost that is already incurred and is not recoverable. This type of cost is not…

Q: What is life-cycle budgeting?

A: Budgeting:Budgeting refers to preparation of financial statements that show all the incomes and…

Q: Explain the difference between strategic and operational budgets.

A: Strategic budget: A strategic budget is a long-term financial plan. It achieves the long-term goals…

Q: Do you think the extra expense of providing  acapital budget is imortant?

A: The objective of the question is to understand the importance of the extra expense of providing a…

Q: 1. What is Budgeted Income Statement?   2. What is Margin of Safety? 3. What is Net Present…

A: 1. Budgeted Income Statement: Budgeted income statement is computed to ascertain the expected net…

Q: What is a static budget? Explain? Give example?

A:

Q: What is a static planning budget?

A: Budget:   It is a statement of revenues and expenditures to be incurred by the company for a…

Q: Define static budget.

A: Budget is a estimation of revenue and expenses for a future period of time

Q: How can we use the PW criterion to compare the alternatives to minimize expenditures?

A: The full form of PW is present worth. Present worth is known as the present value of the investment…

Q: What are the components of budgeting model and why is it important?

A: Budgeting The purpose of preparing the budget to evaluate the performance of the business for a…

Q: What is a master budget?

A:

Q: Explain participative budgeting

A: Budgeting is a process of making a financial plan with respect to income and expenditure. The…

Q: what are the pros and cons for activity based budgeting ?

A: Activity based budgeting is a method in which activity are thoroughly analyzed to predict costs.it…

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.