Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below: Budgeted number of machine-hours Budgeted variable costs: Supplies (@ $8.40 per machine-hour) Power (@ $5.20 per machine-hour) Budgeted fixed costs: Salaries Equipment depreciation Total expense Required: Prepare a flexible budget for 7,150 machine-hours per month. Wytch Corporation 6,750 $ 56,700 35,100 53,100 27,900 $ 172,800
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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