MURPHY COMPANY Flexible Budget Performance Report For the Year Ended July 31, 2018 Flexible Sales Actual Budget Flexible Results Variance Budget Volume Static Variance Budget Units 35,000 (a) 35,000 5,000 F (a) Sales Revenue $ 219,000 (b) $ 219,000 $ 27,000 F (A) Variable Expenses 85,000 84,000 13,000 U Contribution Margin 134,000 (d) 135,000 14,000 F Fixed Expenses 105,000 (e) 100,000 Operating Income $ 29,000 $ 35,000 $ 14,000 F (0
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.
Preparing a flexible budget performance report
Murphy Company managers received the following incomplete performance report:
Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.
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