Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual performance. Last month, Paper Bright produced 120 000 units and incurred direct materials cost of $150 000. Its static budget for the year has a direct materials cost of $200 000 for 150 000 units. Required (a) Calculate the direct materials cost in the flexible budget. (b) Calculate the direct materials flexible budget variance
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.
Subject - account
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