Sandhill Company expects to produce 54,000 units of product XLA during the current year. Budgeted variable manufacturing costs per unit are direct materials $8, direct labour $12, and overhead $19. Annual budgeted fixed manufacturing overhead costs are $85,500 for depreciation and $46,500 for supervision. in the current month, Sandhill produced 5,000 units and incurred the following costs: direct materials $36,000, direct labour $58,000, variable overhead $103,930, depreciation $7,125, and supervision $4,247. Prepare a flexible budget report. (List variable costs before fixed costs)
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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