Lonoca Engineering manufactures products for high precision engineering industry. It has two production departments (Assembly and Finishing) and two support departments (Maintenance and Human Resource). The usage of the two support departments in 2020 is as follows: User of Support Department Human Resource Maintenance Human Resource - 5% Maintenance 5% - Assembly 55% 40% Finishing 40% 55% The budgeted costs in the support departments for 2020 were as follows: Human Resource $200,000 Maintenance $50,000
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.
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