he master budget at Monroe Manufacturing last period called for sales of 43,900 units at $61 each. The costs were estimated to be $45 variable per unit and $543,000 fixed. During the period, actual production and actual sales were 46,900 units. The selling price was $60 per unit. Variable costs were $47 per unit. Actual fixed costs were $534,000. Require
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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Prepare a profit
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Profit variance analysis is a financial evaluation procedure that compares a company's actual profit to its planned or projected profit. The purpose of this study is to discover and comprehend the causes for any variations or deviations between actual and predicted profit statistics. Organizations may identify areas where performance differed from the original plan, examine the effect of certain issues, and make educated decisions to enhance profitability and financial performance by studying these deviations. Profit variance analysis is a useful technique for assessing the success of a company's financial strategy and operational performance in meeting profit goals.
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