ts of $80,000. During the year ended December 31,2022, it produced 26,000 units.
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.
⦁ XYZ Company budgeted to produce 20,000 units for the year ending December 31, 2021 at sales revenue of $400,000 and fixed cost of $150,000 and variable costs of $80,000. During the year ended December 31,2022, it produced 26,000 units.
Required:
Prepare a flexible budget, in good form, to reflect its level of attainment in a performance report. Use the following headings: Static budget, flexible budge and Variances (Fav or UF)
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