The following budgeted and actual volume and cost data are for July of this year: Volume Budgeted manufacturing costs: Variable costs per unit: Direct materials Direct labor Overhead Total fixed overhead costs Actual manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead Required: a. Prepare a static budget analysis of production costs for July of this year. b. Prepare a flexible budget analysis of production costs for July of this year. Budget 20,000 $17.00 7.00 200 $220,000 Actual 18.000 $310.000 135,000 36,000 210,000
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.
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