Required information [The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $860. Budgeted cost data per tenant application for 2022 follow: • Professional labor: 1.5 hours at $20.00 per hour • Credit checks: $58.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,800 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,900 for 400 hours of professional labor. Credit checks went up to $63 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $4,400. The average first monthly rentals for August 2022 were $960 per apartment unit for 90 units. uired: What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the s volume variance for the month?
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.
Urmila
Step by step
Solved in 4 steps with 4 images