Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50% and 60% capacity. Variable overheads: Indirect Material Labour At 70% capacity (Rs) 60,000 180,000 Semi-variable overheads: Electricity: (40% Fixed & 60% variable) Repairs: (80% fixed & 20% Variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours 30,000 3,000 16,500 4,500 15,000 93,000 1,86,000
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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