Tanya Inc.’s static budget for 10,000 units of production includes P60,000 for direct materials, P44,000 for direct labor, fixed utilities costs of P5,000, and supervisor salaries of P15,000. A flexible budget for 12,000 units of production would show: * A. The same cost structure in total B. Direct materials of P72,000, direct labor of P52,800, utilities of P5,000, and supervisor salaries of P15,000 C. Direct materials of P60,000, direct labor of P52,800, utilities of P6,000, and supervisor salaries of P15,000 D. Total variable costs of P148,800
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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