Top managers of Root Industries predicted 2024 sales of 14,600 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3)-(5) Sales Volume Variance 5 Static Budget

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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.