The following data were collected by Bemidji Co. for the month of June: Static budget data: Sales 13,500 units @ 46/unit Variable costs $ 32.00 per unit Total fixed costs $ 28,350 Actual results: Sales 15,000 units @ $45/unit Variable costs $ 34.80 per unit Total fixed costs $ 26,850 Required: 1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
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.
The following data were collected by Bemidji Co. for the month of June:
Static budget data:
Sales 13,500 units @ 46/unit
Variable costs $ 32.00 per unit
Total fixed costs $ 28,350
Actual results:
Sales 15,000 units @ $45/unit
Variable costs $ 34.80 per unit
Total fixed costs $ 26,850
Required:
1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable,
and "None" for no effect (i.e., zero variance).)
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