Johnson Manufacturing Company's cost accounting department reported the following costs for the period, at an actual production level of 200 units: Direct Materials: Direct Labor: Variable Overhead: Direct Materials: Direct Labor: $5,000 Standard rates are as follows, for a budgeted production level of 250 units: Variable Overhead: $9,000 $4,000 $28/unit $19/unit $35/unit What is the total flexible budget variance? Is it favorable or unfavorable? Show your solution
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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