On the basis of the projected proceeding data and projections prepare the following for Year ended ended 31 December 2020: 1. Sales budget. 2. Production budget. 3. Labour cost budget.
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.
On the basis of the projected proceeding data and projections prepare the following for Year ended ended 31 December 2020:
1. Sales budget.
2. Production budget.
3. Labour cost budget.
![MTC Furniture manufactures and sells party chairs. The following information was compiled for
the purpose of preparing the company's master budget for the year ended 31 December 2020.
Sales Volume
8 500units
Selling Price per Unit
R400
Expected closing inventory
1870
Expected Opening inventory
170@ R296
Material Requirements
Wood @ R7.20 Per sheet
10 sheets
Steel @ R16 per length
5 Lengths
Labour Requirements
10 hours @ 12/Hour
Budgeted Fixed Manufacturing overheads are charged R125 000.
Budgeted Variable manufacturing overheads per labour hour @ R5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d0cd47e-d06f-4159-926c-8c1141220746%2Febb9ca5f-23bb-48ff-8d0d-4f2a942dd27b%2Fub13rvv_processed.png&w=3840&q=75)
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