The following data pertain to Aurora Electronics for the month of February. Static Budget Actual Units sold ....................................................................................10,000 9,000Sales revenue ............................................................................$120,000 $103,500Variable manufacturing cost ............................................... 40,000 36,000Fixed manufacturing cost ..................................................... 20,000 20,000Variable selling and administrative cost ......................... 10,000 9,000Fixed selling and administrative cost ............................... 10,000 10,000 Required: Compute the sales-price and sales-volume variances for February.
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.
The following data pertain to Aurora Electronics for the month of February.
Static Budget Actual
Units sold ....................................................................................10,000 9,000
Sales revenue ............................................................................$120,000 $103,500
Variable
Fixed manufacturing cost ..................................................... 20,000 20,000
Variable selling and administrative cost ......................... 10,000 9,000
Fixed selling and administrative cost ............................... 10,000 10,000
Required: Compute the sales-price and sales-volume variances for February.
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