Starts Inc. using production levels of 62,000, 67,200, and 69,300 units produced. The following additional information is necessary to complete the budget. Prepare a flexible production budget for the year ending December 31 for : Variable costs: Direct labor ($18.00 per unit) Direct materials ($5.00 per unit) Variable manufacturing costs ($8.00 per unit) Fixed costs: Supervisor’s salaries $27,000 Rent 18,000 Depreciation on equipment 82,000
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.
Starts Inc. using production levels of 62,000, 67,200, and 69,300 units produced. The following additional information is necessary to complete the budget. Prepare a flexible production budget for the year ending December 31 for :
Variable costs:
| Direct labor ($18.00 per unit) | |
| Direct materials ($5.00 per unit) | |
| Variable |
Fixed costs:
| Supervisor’s salaries |
$27,000 |
|
| Rent |
18,000 |
|
|
82,000 |
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