Marble plc has prepared the following flexed production budgets: Production (units) 1,000 900 R R Materials 5 000 4 500 Labour 12 000 10 800 Overheads 24 000 23 600 Total budgeted cost 41 000 38 900 Due to logistical difficulties, only 750 units were produced. What is the total flexed budget for 750 units? a. R35 750 b. R15 750 c. R30 750 d. R32 416
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.
Marble plc has prepared the following flexed production budgets:
Production (units) 1,000 900
R R
Materials 5 000 4 500
Labour 12 000 10 800
Total budgeted cost 41 000 38 900
Due to logistical difficulties, only 750 units were produced.
What is the total flexed budget for 750 units?
| a. |
R35 750 |
|
| b. |
R15 750 |
|
| c. |
R30 750 |
|
| d. |
R32 416 |
Flexible budget means estimates that can be changed as per the production made or as per the demand.
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