Q3. In a manufacturing process the following standards apply: Standard Price: Raw material A Rs. 10 per kg B Rs. 50 per kg Standard mix: 75% A and 25% B (by weight) Standard Output (weight of product as a percentage of weight of raw material) -90% In a particular period actual costs, usages and output were as follows: 4,400 kgs of A costing Rs. 46,500 1 The budgeted output for the period was 7.200 kg. Compute Material variances. (Material cost, price, usage, mix, yield variances) 1,600 kgs of B costing Rs. 78.500 Output 5,670 kg of product
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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