repare a flexible budget for Dand Company using production levels of 16,000, 18,000 and 20,000 units produced. The following is additional information necessary to complete the budget:
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.
- Prepare a flexible budget for Dand Company using production levels of 16,000, 18,000 and 20,000 units produced. The following is additional information necessary to complete the budget:
Variable costs:
Direct: Labor ($6.00 per unit)
Direct Materials ($8.00 per unit)
Variable
Fixed costs:
Supervisor’s salaries $80,000
Rent 12,000
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