James Manufacturing has the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 11,500 ? 4,000 U ? Sales revenue ? $ 14,000 F ? ? ? Less: Variable manufacturing costs $ 88,750 $ 93,000 ? $ 113,000 Variable marketing and administrative ? $ 6,250 U ? $ 7,000 F $ 34,000 Contribution margin $ 53,000 ? ? $ 6,400 U ? What was James’s actual sales revenue for July? Multiple Choice $207,000 $175,000 $217,000 $161,000
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.
TB MC Qu. 16-40 (Algo) James Manufacturing has the following...
James Manufacturing has the following information available for July:
| Actual Results | Flexible |
Flexible Budget | Sales Activity Variance | ||||||||||||||||
| Units | 11,500 | ? | 4,000 | U | ? | ||||||||||||||
| Sales revenue | ? | $ | 14,000 | F | ? | ? | ? | ||||||||||||
| Less: | |||||||||||||||||||
| Variable |
$ | 88,750 | $ | 93,000 | ? | $ | 113,000 | ||||||||||||
| Variable marketing and administrative | ? | $ | 6,250 | U | ? | $ | 7,000 | F | $ | 34,000 | |||||||||
| Contribution margin | $ | 53,000 | ? | ? | $ | 6,400 | U | ? | |||||||||||
What was James’s actual sales revenue for July?
-
$207,000
-
$175,000
-
$217,000
-
$161,000
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