Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output Sales revenue Raw materials Labour Fixed overheads Profit OA. £2,500 favourable B. £2,500 adverse C. £3,000 favourable 2,200 units OD. £3,000 adverse £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8,800 2,500 units What is the direct labour efficiency variance for Product ZN6 for the month of April? £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19,800
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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