Dixon​ & Company manufactures Part A and uses standard costs to prepare its flexible budget. For the first quarter of the​ year, direct materials and direct labor standards for Part A were as​ follows:   Direct​ materials: 5 pounds per​ unit; $4 per pound Direct​ labor: 3 hours per​ unit; $18 per hour   During the first quarter, Dixon produced​ 4,000 units of this product. Actual direct materials and direct labor costs were​ $61,000 and​ $260,000, respectively.   For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of​ 4,000 units.

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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.