Pharoah company expects to produce 1,200,000 units of products x in 2022. Monthly production is expected to range from 75,600 to 117,600 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labour $7, and overhead $10. Budgeted fixed manufacturing costs per units for depreciation are $4 and for supervision $1. prepare a flexible manufacturing budget for the relevant range value using increments of 21,000 units. (list variable costs before fixed costs.)
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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