PB3. 7.2 TIB makes custom guitars and prepared the following sales budget for the second quarter Units Sales price Budgeted sales April May 80 86 $ 1,200 $ 1,200 $96,000 $103,200 June 84 $ 1,200 $100,800 It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000, Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30, 2018.
PB3. 7.2 TIB makes custom guitars and prepared the following sales budget for the second quarter Units Sales price Budgeted sales April May 80 86 $ 1,200 $ 1,200 $96,000 $103,200 June 84 $ 1,200 $100,800 It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000, Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:PB3. 7.2 TIB makes custom guitars and prepared the following sales budget for the second quarter
Units
Sales price
Budgeted sales
April
May
80
86
$ 1,200
$ 1,200
$96,000 $103,200
June
84
$ 1,200
$100,800
It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20,
Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per
unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000, Administrative salaries
per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense
per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30, 2018.
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