Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2013: Budget at 5,000 Units Actual Amounts at 5,800 Units $200,000 $229,100 Sales Revenue Cost Direct materials Direct labor Equipment depreciation Indirect labor Indirect materials Rent and insurance $60,000 75,000 5,000 7,500 9,000 12,000 $71,000 86,500 5,000 8,600 9,600 13,000 Required: Prepare a performance budget report for Campbell Clothing for the year and comment on the results
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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