Planning budget: Sales volume = 40,000. Actual results: Sales price = $10.00. %3D %3D Consider the following budget information: RU per Cost per Cost per Cost per Finished Resource Finished Planning Finished Unit (FU) Unit (RU) Unit (FU) Budget Actual Unit (FU) Sales - Total $s $360,000 100,000 $390,000 107,250 DM - Materials Direct labor Variable overhead Fixed expenses Net income 5.00 $0.25 $0.40 80,000 $1.90 4.00 68,250 100,000 25,400
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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