Baker charges its customers $80 per hour. The chief operating officer expected that the company would provide 50,000 hours of service to clients. However, the vice president for marketing argues that the actual number of hours may range from 46,000 to 54,000 hours. Baker's standard variable cost is $52.50 per hour, and its standard fixed cost is $770,000. Required: Prepare flexible budgets for 46,000, 50,000, and 54,000 hours. $ $ 46,000 0 $ 0 $ Hours 50,000 0 $ 0 $ 54,000 0 0
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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