The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 44 Sales volume (units) 61,000 Costs: Materials (E) 52,500 Labour (E) 33.800 Energy (E 101,000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of £15,000, Depreciation is a fixed cost. An allowance for an energy price increase of 12% has atready been Included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 9.3% The sales volume will increase by 13% The rise in the energy prices should be revised to 3% What will be the company's new sales volume for the year?

Q: A company is at present working at 90% of its capacity and producing 13,500 units per annum. It…

A:

Q: otal production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and…

A: Solution : Let the total fixed cost for 50000 units be X Given   50000 units 60000 units…

Q: The following data relates to a company's operating budget for its next operating year: Sales price…

A: Cost of goods sold is the total of material, labour and overhead costs associated with the…

Q: The Management Accountant of Kafululu Plc has prepared the following budget information for the year…

A: The Contribution Margin income statement is to be prepared as to find the necessary answers, as it…

Q: What is the peso value that best quantifies the marketing division's failure to achieve budgeted…

A: A company is expected to work on full capacity as otherwise it is a waste of resources and not…

Q: Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor…

A: Manufacturing overhead is the sum of all indirect costs incurred while manufacturing a product. Cash…

Q: Jones Company developed the following static budget at the beginning of the company's accounting…

A: Variable cost per unit = Total Variable costs / No. of units = $5,250 / 10,500 units = $0.50 per…

Q: Wellmann Corporation is a service company that measures its output by the number of customers…

A: The variances are the difference between the actual figure with the budgeted one. A spending…

Q: NUBD Co. has the following budget estimates for its second year of operations: Projected sales –…

A: Net income=Sale×12%=P 3,500,000×12%=P 420,000

Q: Total production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and 60,…

A: Let, Variable cost per unit = a Total Fixed cost = b   So, P2,800,000 = 60000a + 1.25b P2,300,000…

Q: The Brotherhood Company has produced the following information from which a cash budget for the…

A: Given that, Selling price per unit = K50000 Variable cost per unit : Material = K26000 Labor = K8000…

Q: A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture.…

A: We have the following information: Company manufactures and sells one product which requires 8 kg…

Q: . Rawlings Company prepared the following budget information for the coming year:4 Product A $85,714…

A: Calculation of sales mix: Product Budgeted sales (units) Sales mix (Budgeted sales / Total…

Q: During the current year, Mute Corporation expected to sell 24,700 telephone switches. Fixed costs…

A: Margin of safety in units = Total sales in units - Break even sales in units

Q: At the beginning of the period, the Cutting Department budgeted direct labor of $137,000, direct…

A: Budget To calculate the estimate budget of the product which is needed for determining the…

Q: Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's…

A:

Q: Crane Corporation's master budget for the year is shown below: Sales (61,900 units) Cost of goods…

A: The flexible budget is prepared based on the standard rate and actual units of production. The…

Q: Prepare a flexible budgeted income for 120,000 units using the following information from a static…

A: A budget is a statement that is prepared by the companies, government, and individuals based on the…

Q: Pallas Ltd provides the following budgeted information Sales revenue $1,000,000 Total variable costs…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

Q: The budgeted income statement presented belowis for Burkett Corp. for the coming fiscal year.  If…

A:

Q: Roland Inc. has provided the following budgeted data:    Sales ..................................…

A: SOLUTION - Margin of safety, also known as MOS, is the difference between your break even point and…

Q: Brodrick Company expects to produce 21,800 units for the year ending December 31. A flexible budget…

A: Formula; Income from operations=Sales-Variable costs-Fixed costs

Q: The next year's budget for Green, Inc., a multi-product company, is given below: Product A Product B…

A: Sales Mix Variance:-It is the difference between the company's actual sales mix and the budgeted…

Q: 7. Toews Ltd has prepared the following flexible budget for the coming year. The Budgeted level of…

A: The variable cost changes with level of production but fixed cost remains constant at every level of…

Q: NUBD bases its manufacturing overhead budget on machine hours. Estimated machine hours are 10,000…

A: Solution: Manufacturing overhead cost affect the cash budget  = Amount of cash manufacturing…

Q: Rawlings Company prepared the following budget information for the coming year: Product A Product B…

A: Budgeting: A budget is a spending plan in light of pay and costs. Budgeting is the method involved…

Q: For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs…

A:

Q: Bonavita Corporation is a service company that measures its output by the number of customers…

A: Solution: Budgeted operating income = Budgeted revenue - Budgeted expenses Budgeted revenue = Nos of…

Q: The Success Corporation has a normal capacity of 2,000,000 units. The current year's budget was…

A: First we will calculate the contribution for budgeted sales and actual sales  -

Q: The following data relates to a company's operating budget for its next operating year: Sales price…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Dakota Co. has prepared the following flexible budget for the coming year. The budgeted level of…

A: Budgeted Cost: In business, a budgeted cost is an estimate of the expenditures that a firm…

Q: The master budget of Sheridan Company shows that the planned activity level for next year is…

A: Total variable costs = Indirect labor + Machine supplies + Indirect materials = $720000 + 180000 +…

Q: Orange Company prepared the following budget information for the coming year: Product A Product B…

A: Break-Even Point:-It is calculated by dividing fixed cost by the contribution per unit. It is a unit…

Q: The next year's budget for Trend, Inc., a multi-product company, is given below: Product A Product B…

A: Sales mix variance is the variance in sales revenue due to difference in proportion of products…

Q: At the beginning of the period, the Cutting Department budgeted direct labor of $138,000, direct…

A: The budgeting is a process of estimating the costs and revenue of the upcoming periods well in…

Q: The following data relates to a company's operating budget for its next operating year: Sales price…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A summary of a manufacturing company's budgeted profit statement for its next financial year, when…

A: Answer 1: Break even point in unit=Fixed CostContrbution per unit=(21,000+18,000)13=39,00013=3,000…

Q: The direct labor budget of Kiko Corporation for the upcoming fiscal year contains the following…

A: Manufacturing overhead budget refers to the budget prepared to estimate the total overhead to be…

Q: Corporation has a normal capacity of 2,000,000 units. The current year's budget was based on the…

A: The entity success and failure can be analyzed by the difference between the standard and actual…

Q: The following data relates to a company's operating budget for its next operating year Sales price…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Consider the following budgeted figures: Sales £450,000 Opening inventory £20,000 Closing…

A: We have the following information: Sales £450,000 Opening inventory £20,000 Closing inventory…

Q: Apparelle Co. developed the following equation to predict certain components of its budget for the…

A: COST EQUATION : Y = A + BX WHERE Y IS TOTAL COST , A IS THE FIXED COST , B IS THE VARIABLE  COST PER…

Q: High                           Low   Direct labor…

A: SOlution: Under High low method, firstly variance costs is determined by dividing the difference of…

Q: The master budget of Vaughn Manufacturing shows that the planned activity level for next year is…

A: Total overhead costs are the cost incurred on the production or manufacture of the goods. These are…

Q: At the beginning of the period, the Cutting Department budgeted direct labor of $139,000, direct…

A: Given data Budgeted direct labor = $139,000 Budgeted direct materials = $169,000 Fixed factory…

Q: A company’s static budget estimate of total shipping cost was $100,000 based on theassumption that…

A: Variable cost is the cost which changes with the change in the output level. It is the cost which…

Q: A company that manufactures a single product has provided the following budgeted standard cost and…

A: The Numerical has covered the Concept of Break-Even Point in the Break-even analysis. The Break-even…

Q: A company's flexible budget for 11,000 units of production showed sales, $42,900; variable costs,…

A: Given: Sales revenue $42,900, variable cost $16,500, and fixed cost $10,000 from sale of 11,000…

Q: Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating…

A: Flexible budget is that type of budget which changes with change in activity level. This type of…

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.