E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Ind the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 565 units S S 18,900 29,600 11,650 14,900 75,050 Spending Variance Flexible Budget 565 units Volume Variance Master Budget 200 units $ $ 17,400 25,400 11,400 12,700 66,900
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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![E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2]
Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate
the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Direct Material
Direct Labor
Variable Overhead
Fixed Overhead
Total Manufacturing Costs
Actual Costs
565 units
S
$
18,900
29,600
11,650
14,900
75,050
Spending
Variance
Flexible
Budget
565 units
Volume
Variance
Master Budget
200 units
$
$
17,400
25,400
11,400
12,700
66,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fc83afb-cff6-4943-9817-025678bf8fce%2F52f2b409-f435-4763-8336-22408825ce03%2Fr4ww3gu_processed.jpeg&w=3840&q=75)
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