Bean There Inc. manufactures coffee makers. Selected budget and actual information for 2020 are provided below: Budget Information Actual Information Units sold 1 36,000 Sales in dollars $ 1,272,335 1,363,217 Average selling price per unit $ 50 4 Variable cost per unit $ 30 5 Variable cost in total 2 $ 817,930 Fixed selling and admin $ 302,900 $ 293,200 Operating income 3 6 Calculate on excel: 1. Complete the missing information above (1,2,3,4,5,6) 2. Prepare a flexible budget based on the actual quantity of units sold 3. Prepare a performance report comparing actual results to budgeted results in contribution income statement format. Ensure that the report breaks down variances between actual and budget into price and volume variances for sales, variable costs, and selling and admin expenses including which variances are favorable and which are unfavourable
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.
Bean There Inc. manufactures coffee makers. Selected budget and actual information for 2020 are provided below:
| Budget Information | Actual Information | |||
| Units sold | 1 | 36,000 | ||
| Sales in dollars | $ 1,272,335 | 1,363,217 | ||
| Average selling price per unit | $ 50 | 4 | ||
| Variable cost per unit | $ 30 | 5 | ||
| Variable cost in total | 2 | $ 817,930 | ||
| Fixed selling and admin | $ 302,900 | $ 293,200 | ||
| Operating income | 3 | 6 |
Calculate on excel:
1. Complete the missing information above (1,2,3,4,5,6)
2. Prepare a flexible budget based on the actual quantity of units sold
3. Prepare a performance report comparing actual results to budgeted results in contribution income statement format. Ensure that the report breaks down variances between actual and budget into price and volume variances for sales, variable costs, and selling and admin expenses including which variances are favorable and which are unfavourable
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