E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., ze variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 385 units $ $ 17,100 27,800 9,850 13,100 67,850 Spending Variance Flexible Budget 385 units Volume Variance Master Budget 200 units $ $ 15,600 23,600 9,600 11,800 60,600
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]
Required:
Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June:
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zer
variance).
Direct Material
Direct Labor
Variable Overhead
Fixed Overhead
Total Manufacturing Costs
Actual Costs
385 units
$
Saved
17,100
27,800
9,850
13,100
67,850
Spending
Variance
Flexible
Budget
385 units
Volume
Variance
Master Budget
200 units
$
$
15,600
23,600
9,600
11,800
60,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a30a535-522f-4ec3-b9d8-e0a4f3683682%2F03c48574-d541-4aa6-81e2-1906487974b5%2Fg0v901m_processed.jpeg&w=3840&q=75)
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