Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed costs, $300,000. The following actual financial results are available for May. Prepare a flexible budget performance report for May. Actual Sales (105,000 units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,275,000 Variable costs . 712,500 Fixed costs . 300,000
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.
Beech Company produced and sold 105,000 units of its product in May. For the level of production
achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed costs,
$300,000. The following actual financial results are available for May. Prepare a flexible budget performance
report for May.
Actual
Sales (105,000 units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,275,000
Variable costs . 712,500
Fixed costs . 300,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
