Flexible Budget with Different Levels of ProductionBalboa Company budgeted the following amounts:Variable costs of production:Direct materials 3 pounds @ $1.30 per poundDirect labor 0.5 hr. @ $18.00 per hourVOH 0.5 hr. @ $3.40FOH:Materials handling $8,600Depreciation $4,350Required:Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units
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.
Flexible Budget with Different Levels of Production
Balboa Company budgeted the following amounts:
Variable costs of production:
Direct materials 3 pounds @ $1.30 per pound
Direct labor 0.5 hr. @ $18.00 per hour
VOH 0.5 hr. @ $3.40
FOH:
Materials handling $8,600
Depreciation $4,350
Required:
Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units
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