Gundy Company expects to produce 1,226,400 units of Product XX in 2017. Monthly production is expected to range from 70,600 to 104,200 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3. In March 2017, the company incurs the following costs in producing 87,400 units: direct materials $288,200, direct labor $602,800, and variable overhead $964,400. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March.
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.
Please do not give solution in image format thanku
Step by step
Solved in 3 steps
