A company produces three products with the following budget information available: A B Sales GHC14 GHC15 GHC18 Standard full cost GHC10 GHC10 GHC13 Budget Production 10,000 units 13,000 units 9,000 units The actual sales price and production were: A в C Sales price GHC14.5 GHC15.15 GH¢19.00 Budget production 9,500units 13,500units 8,500units You are required to calculate: i. The sales price variance ii. The sales volume profit variance iii. The sales mix variance profit iv. The sales quantity profit volume variance
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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