From the following data, prepare flexible budget for production of 40000 units and 75000 units, distinctly showing variable cost and fixed cost as well as total cost. Also indicate elements wise cost per unit. Budget output is 100000 units and budgeted cost per unit is as follows- Direct material 95 Direct labour 50 Production overhead (variable) 40 Production overhead (fixed) 05 Administration overhead (fixed) 05 Selling overhead (10% fixed) 10 Distribution expenses (20% fixed) 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.
From the following data, prepare flexible budget for production of 40000 units and
75000 units, distinctly showing variable cost and fixed cost as well as total cost. Also indicate
elements wise cost per unit. Budget output is 100000 units and budgeted cost per unit is as
follows-
Direct material 95
Direct labour 50
Production
Production overhead (fixed) 05
Administration overhead (fixed) 05
Selling overhead (10% fixed) 10
Distribution expenses (20% fixed) 15
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