Baltimore Booms is a start-up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Blooms's static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000. Baltimore Blooms' total flexible budget cost for the actual number of amplifiers produced and sold is: A. $58,000 B. $60,000 C. $67,000 D. $70,000
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.
Baltimore Booms is a start-up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Blooms's static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000.
Baltimore Blooms' total flexible budget cost for the actual number of amplifiers produced and sold is:
A. $58,000
B. $60,000
C. $67,000
D. $70,000
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