Wala Inc. bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $30,110 per month, which includes depreciation of $3,380. The remainder of the fixed selling and administrative expense represents current cash flows The sales budget shows 4,400 units are planned to be sold in July. Required:
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.
Dog
Step by step
Solved in 3 steps
