What was James’s flexible budget sales revenue for July?
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.
TB MC Qu. 16-41 (Algo) James Manufacturing has the following...
James Manufacturing has the following information available for July:
| Actual Results | Flexible |
Flexible Budget | Sales Activity Variance | ||||||||||||||||
| Units | 15,000 | ? | 2,000 | U | ? | ||||||||||||||
| Sales revenue | ? | $ | 16,000 | F | ? | ? | ? | ||||||||||||
| Less: | |||||||||||||||||||
| Variable |
$ | 92,750 | $ | 104,000 | ? | $ | 145,000 | ||||||||||||
| Variable marketing and administrative | ? | $ | 2,750 | U | ? | $ | 3,500 | F | $ | 50,000 | |||||||||
| Contribution margin | $ | 69,000 | ? | ? | $ | 8,000 | U | ? | |||||||||||
What was James’s flexible budget sales revenue for July?
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$161,000
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$195,000
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$211,000
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$221,000
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