Sales price $91 Direct material per unit 31 Direct labor per unit 16 Variable manufacturing overhead per unit 13 Fixed manufacturing overhead per unit 77,000 Variable sales and admin expenses per unit 4 Fixed sales and admin expenses per unit 24,000 Taxes 30%* *of income before taxes Prepare a flexible budgeted income for 100,000 units using the above information from a static budget for 80,000 units: Flexible Budgeted Income Statement $- Select - Cost of Goods Sold - Select - - Select - - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - - Select - $- Select -
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.
| Sales price | $91 |
| Direct material per unit | 31 |
| Direct labor per unit | 16 |
| Variable manufacturing |
13 |
| Fixed manufacturing overhead per unit | 77,000 |
| Variable sales and admin expenses per unit | 4 |
| Fixed sales and admin expenses per unit | 24,000 |
| Taxes | 30%* |
*of income before taxes
Prepare a flexible budgeted income for 100,000 units using the above information from a static budget for 80,000 units:
Flexible
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$- Select - |
| Cost of Goods Sold | |
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- Select - |
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$- Select - |
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$- Select - |
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$- Select - |
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