Required information [The following information applies to the questions displayed below.] A company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for April as shown below: Actual Total Fixed Variable Element per Customer Served Element for April $ 216,500 per Month Revenue $ 5,900 Employee salaries and $ 116, 200 $ 19,700 $ 42,500 $ 66,000 $ $ 1,300 wages Travel expenses Other expenses 580 $ 45,000 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during April the company actually served 40 customers.
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.
![Required information
[The following information applies to the questions displayed below.]
A company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual
results for April as shown below:
Fixed
Actual
Variable Element per
Total
for April
$ 216,500
Element
per Month
Customer Served
Revenue
5,900
Employee salaries and
24
$
$ 116,200
$ 19,700
$ 42,500
66,000
1,300
wages
Travel expenses
580
Other expenses
45,000
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during
April the company actually served 40 customers.
Required:
1. Calculate the amount of revenue the company will include in the April flexible budget.
Amount of revenue included in the flexible budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d5fb030-0b22-4856-bbc7-ebad53742943%2Fbc9155c5-7371-46c2-9e95-235b7cfdb8f4%2Fkp67i4k_processed.png&w=3840&q=75)
![Required information
[The following information applies to the questions displayed below.]
A company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual
results for April as shown below:
Fixed
Element
Actual
Total
for April
$ 216,500
Variable Element per
per Month
Customer Served
Revenue
5,900
Employee salaries and
$ 116,200
$ 19,700
$4
wages
66,000
1,300
Travel expenses
$
580
Other expenses
45,000
42,500
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during
April the company actually served 40 customers.
2. Calculate the amount of employee salaries and wages the company will include in the April flexible budget.
Amount of employee salaries and wages included in the flexible budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d5fb030-0b22-4856-bbc7-ebad53742943%2Fbc9155c5-7371-46c2-9e95-235b7cfdb8f4%2Ffnb9zdk_processed.png&w=3840&q=75)
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