Master Budget Flexible Budget Flexible Budget Flexible Budget (6,200 Units) (5,200 Units) (4,200 Units) (7,200 Units) Direct materials 1,040 Direct labor 2,080 Variable manufacturing overhead 1,560 Fixed manufacturing overhead 18,300 Total manufacturing cost 22,980
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.
Olive Company makes silver belt buckles. The company’s
Required:
Complete the table by preparing Olive’s flexible budget for 4,200, 6,200, and 7,200 units. (Round your intermediate calculations to 2 decimal places.)
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