The master budget at Monroe Manufacturing last period called for sales of 43,900 units at $61 each. The costs were estimated to be $45 variable per unit and $543,000 fixed. During the period, actual production and actual sales were 46,900 units. The selling price was $60 per unit. Variable costs were $47 per unit. Actual fixed costs were $534,000. Required: Prepare a flexible budget for Monroe Manufacturing.
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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![The master budget at Monroe
Manufacturing last period called for sales
of 43,900 units at $61 each. The costs were
estimated to be $45 variable per unit and
$543,000 fixed. During the period, actual
production and actual sales were 46,900
units. The selling price was $60 per unit.
Variable costs were $47 per unit. Actual
fixed costs were $534,000.
Required:
Prepare a flexible budget for Monroe
Manufacturing.
Monroe Manufacturing
Flexible Budget
Sales revenue
Variable costs
Contribution margin
Fixed costs
Operating profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24de9d49-6070-4d88-ab58-a37c20172dbc%2F9547f1f8-654f-4bb7-9c05-e2fc4fed2e6d%2Fxvezsjf_processed.jpeg&w=3840&q=75)
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