Complete the following partial flexible budget performance report, and indicate whether each variance is favorable The company budgets a selling price of $80 per unit and variable costs of $35 per unit. (Indicate the effect of eac selecting favorable, unfavorable, or no variance.) For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results (10,800 units) (10,800 units) $ 486,000 270,000 216,000 351,000 285,000 Variances Favorable/Unfavorable $ 21,000 Favorable Favorable Favorable Unfavorable Favorable
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.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
