Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $166,660 budgeted expenses include $110,200 in variable expenses for desks and $20,460 in variable expenses for chairs, as well as $36,000 fixed expenses. The actual expenses include $37,300 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Actual Results Variances 145 66 Fixed expenses Income from operations $ 194,300 35,640 166,660 $ 63,280 151 74 $200,830 41,070 175,330 $ 66,570 Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible Budget Actual Results $6,530 F 5,430 F 8,670 U $3,290 F Variance Fav./Unf. Unfavorable Favorable Unfavorable Unfavorable Unfavorable Unfavorable
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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