Marble Table Company manufactures tables for schools. The 2019 operating budget is based on sales of 44,000 units at $55 per table. Budgeted variable costs are $35 per unit, while fixed costs total $620,000. The budgeted direct material rate is $21 per unit and direct labor is $11. The actual income for 2019 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were 533 per unit and fixed costs totaled $627.000. What is the Static-Budget Variance for Operating Income? O $217,000 favorable O $40,000 favorable O $257,000 favorable O $579,000 favorable
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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