F) Budgetary Control The following information is now supplied by the C.E.O. showing the production expenses for the previous month. Budgeted Actual Production Production of of 3,500 units 3,000 units 99,600 55,200 9,000 64,200 Direct Materials 90,000 48,000 6,000 66,000 Direct Labour Variable Manufacturing Overheads Fixed Manufacturing Overheads 210,000 228,000 ----- He has been advised that the flexible budgeting approach should be used to properly evaluate the report on hand. You are now required to: 1) Prepare a Static Variance Report 2) Prepare a Flexible Variance Report
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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