Laurie Inc.’s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $25,000. A flexible budget for 12,000 units of production would show a.direct materials of $72,000, direct labor of $52,800, fixed utilities costs of $5,000, and supervisor salaries of $25,000 b.total variable costs of $159,800 c.direct materials of $60,000, direct labor of $52,800, fixed utilities costs of $6,000, and supervisor salaries of $25,000 d.the same cost structure in total
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.
Laurie Inc.’s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $25,000. A flexible budget for 12,000 units of production would show
A flexible budget is that budget which includes all the flexibility and change in the output. In comparison to Static budget, the flexible budget is more useful. It includes Fixed and variable both.
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