Pharoah Company expects to produce 51,000 units of product XLA during the current year. Budgeted variable manufacturing costs per unit are direct materials $8, direct labour $11, and overhead $18. Annual budgeted fixed manufacturing overhead costs are $89.400 for depreciation and $44,400 for supervision. In the current month, Pharoah produced 5,700 units and incurred the following costs: direct materials $43,320, direct labour $60,600, variable overhead $110,808, depreciation $7,450, and supervision $4,144.
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.
![Pharoah Company expects to produce 51,000 units of product XLA during the current year. Budgeted variable manufacturing costs
per unit are direct materials $8, direct labour $11, and overhead $18. Annual budgeted fixed manufacturing overhead costs are
$89,400 for depreciation and $44,400 for supervision.
In the current month, Pharoah produced 5,700 units and incurred the following costs: direct materials $43,320, direct labour $60,600,
variable overhead $110,808, depreciation $7,450, and supervision $4,144.
Prepare a flexible budget report. (List variable costs before fixed costs.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe99525a8-ffb3-4372-a4f5-e61aee48b2ee%2F23cfb413-9b64-49a3-be95-08b32f17ddcf%2F5dlrl4h_processed.jpeg&w=3840&q=75)
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