You have recently been hired by Clear Company, which produces windows for personal homes. Based on the following information, prepare a flexible budget for 3,500; 4,000; and 4,500 units: • Direct materials per unit: $18.00 Direct labor per unit: $19.00 • Variable overhead cost per unit: $5.00 • Fixed overhead: $58,000 per year
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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