Sunland Company expects to produce 58,000 units of product XLA during the current year. Budgeted variable manufacturing costs per unit are direct materials $5, direct labour $12, and overhead $17. Annual budgeted fixed manufacturing overhead costs are $89,400 for depreciation and $41,400 for supervision. In the current month, Sunland produced 5,900 units and incurred the following costs: direct materials $25,370, direct labour $68,700, variable overhead $108,324, depreciation $7,450, and supervision $3,864. 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.
 alt="Sunland Company expects to produce 58,000 units of product XLA during the current year. Budgeted variable manufacturing costs
per unit are direct materials $5, direct labour $12, and overhead $17. Annual budgeted fixed manufacturing overhead costs are
$89,400 for depreciation and $41,400 for supervision.
In the current month, Sunland produced 5,900 units and incurred the following costs: direct materials $25,370, direct labour $68,700,
variable overhead $108,324, depreciation $7,450, and supervision $3,864.
Prepare a flexible budget report. (List variable costs before fixed costs.)
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Sunland Company
Flexible Budget Report
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