ILCB has the following information relating to one of its products Direct material cost per unit $1 Direct Labour cost per unit $3 Variable production cost per unit $3 Selling costs $10 per unit Fixed production overhead $30,000 per month Budgeted production 15,000 units per month Budgeted sales 12,000 units per month What is the total cost of the budgeted monthly production?
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.
ILCB has the following information relating to one of its products
Direct material cost per unit $1
Direct Labour cost per unit $3
Variable production cost per unit $3
Selling costs $10 per unit
Fixed production overhead $30,000 per month
Budgeted production 15,000 units per month
Budgeted sales 12,000 units per month
What is the total cost of the budgeted monthly production?
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