Required information [The following information applies to the questions displayed below.] The fixed budget for 21,300 units of production shows sales of $617,700; variable costs of $63,900; and fixed costs of $143,000.
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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Required information
[The following information applies to the questions displayed below.]
The fixed budget for 21,300 units of production shows sales of $617,700;
variable costs of $63,900; and fixed costs of $143,000.
The company's actual sales were 26,800 units at $730,200. Actual variable costs were $113,400
and actual fixed costs were $133,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or
unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no
variance.)
Contribution margin
Flexible Budget Performance Report
Flexible Budget Actual Results Variances
Favorable/
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5ae4578-9d0d-4369-b6dd-45d14c4c9e30%2Faa3f78f3-57d6-49e1-877c-59850b538ede%2Fwb9iw5f_processed.png&w=3840&q=75)
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