Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table. Required: Complete the table by preparing Olive's flexible budget for 4,300, 6,300, and 7,300 units. (Round your intermediate calculations to 2 decimal places.) Master Budget Flexible Budget Flexible Budget Flexible Budget (5,300 Units) (4,300 Units) (6,300 Units) (7,300 Units) Direct materials 1,060 Direct labor 2,120 Variable manufacturing overhead 1,590 Fixed manufacturing overhead 18,100 Total manufacturing cost 22,870
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.
Olive Company makes silver belt buckles. The company’s
Required:
Complete the table by preparing Olive’s flexible budget for 4,300, 6,300, and 7,300 units. (Round your intermediate calculations to 2 decimal places.)
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