ProNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $115 for each connector and fixed costs of $6,500 per month. ProNet's static budget productions and sales of 100 connectors in August, but the company actually produced and sold 77 connectors at a total cost of $19,000. ProNet's flexible budget variance for total costs is A. 2,645 F. B. $3,645 F. C.$2,645 U. D. $3,645 U.
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.
ProNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $115 for each connector and fixed costs of $6,500 per month. ProNet's static budget productions and sales of 100 connectors in August, but the company actually produced and sold 77 connectors at a total cost of $19,000.
ProNet's flexible
A. 2,645 F.
B. $3,645 F.
C.$2,645 U.
D. $3,645 U.
C.
D.
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