Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table. Required: Complete the table by preparing Olive's flexible budget for 5,400, 7,400, and 8,400 units. (Round your intermediate calculations to 2 decimal places.) Master Budget Flexible Budget Flexible Budget Flexible Budget (6,400 Units) (5,400 Units) (7,400 Units) (8,400 Units) Direct materials $ 640 Direct labor 3,200 Variable manufacturing overhead 1,280 Fixed manufacturing overhead 17,000 Total manufacturing cost $ 22,120
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 master budget appears in the first column of the table.
Required:
Complete the table by preparing Olive's flexible budget for 5,400, 7,400, and 8,400 units. (Round your intermediate calculations to 2
decimal places.)
Master Budget Flexible Budget Flexible Budget
(5,400 Units)
Flexible Budget
(8,400 Units)
(6,400 Units)
(7,400 Units)
Direct materials
$
640
Direct labor
3,200
Variable manufacturing overhead
1,280
Fixed manufacturing overhead
17,000
Total manufacturing cost
$
22,120](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a838c8e-9209-4b5d-b96a-c966f484a578%2Fdde2b972-1cdb-4968-9148-c1d9f80562da%2Fr5f76z9_processed.png&w=3840&q=75)
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