Blossom, Inc. prepared the following master budget items for July: Production and sales Variable manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing costs Total manufacturing costs 38,000 units $ 38,000 $ 60,800 $ 76,000 $120,000 $294,800 During July, Blossom actually sold 44,000 units. Prepare a flexible budget for Blossom based on actual sales. ( intermediate calculations.)
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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