From the following data, prepare a flexible budget for production of 40,000, units and 75,000 units, distinctly showing variable cost and fixed cost as well as total cost Also indicate element- wise cost per unit. Budgeted output is 100,000, units and budgeted cost per unit is as follows: OMR. Direct Material Direct labor Production overhead (variable) Production overhead (fixed) Administration overhead (fixed) Selling overhead (10% fixed) Distribution overhead (20% fixed) 95 50 40 5 5 10 15
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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![From the following data, prepare a flexible budget for production of 40,000, units and 75,000
units, distinctly showing variable cost and fixed cost as well as total cost Also indicate element-
wise cost per unit. Budgeted output is 100,000, units and budgeted cost per unit is as follows:
OMR.
95
50
40
5
5
10
15
Direct Material
Direct labor
Production overhead (variable)
Production overhead (fixed)
Administration overhead (fixed)
Selling overhead (10% fixed)
Distribution overhead (20% fixed)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c9526c1-c92e-4b17-b334-bbc08d5d0873%2F316be838-4111-41ca-8a92-f13bc1c45110%2Fxh8vbtm_processed.jpeg&w=3840&q=75)
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