Fran Powers created the following budget and reported the actual spending listed. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus. (Input all amounts as positive values.) Food Item Transportation Housing Clothing Personal Budgeted $ $ $ $ $ Actual Variance Deficit/Surplus 360 $ 298 320 $ 334 950 $ 982 110 $ 134 275 $ 231
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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.
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- Fran Powers created following budget and reported actual spending listed. Calculate the variance for each catagory and indicate whether it is Deficit or Surplus: Item Budggeted Actual Variance Deficit/Surplus Food $360 $298Automobile $320 $334Housing $950 $982Clothing $110 $134Personal $275 $231Which of the following budgets are prepared before the sales budget? Budgeted Direct Income Labor Statement Budget A) B) Yes Yes Yes No C) D) No Yes No No Multiple Choice Choice A Choice C Choice D Choice BWhich of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
- a) Why do successful companies tend to use the bottom-up approach to establish a master budget? b) Green Tea’s data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month’s needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of…Briefly (5-10) lines) give a written amswer to the following question: What function does an annual budget serve as a part of a company's performance measurement system and how can a budget be used to encourage goal congruence (or 'alignment')?Perform a sensitivity analysis on the budget for values from $5,000 to $35,000 inincrements of $5,000. Construct a graph of percentage reach versus budget. Is theadditional increase in percentage reach monotonically decreasing as the budget allocationincreases? Why or why not? What is your recommended budget? Explain.
- e. Production, Sales, Income Statement Clear my choice Which of the following statements is false? Select one: Oa. The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. Ob. The master budget consists of a number of separate but interdependent budgets. Oc.A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. O d. The direct labor budget begins with the required production in units from the production budget. Oe. Control involves developing goals and preparing various budgets to achieve those goals. Next page Tables- Jump to.. e to seardh1: Create own budget for the month of April 2021. This must include Fixed and Variable expenditure plans; and the sub-heads within each of these two. Please remember to make margin for miscellaneous expenses and some savings as well. 2:At the end of the month, would compare the Budgeted vs Actual figures for the month- using the correct calcuations. 3: Reflections/experience on how their budgeting experience went Whether they maintained the budget as per plan- how did they achieve this; Whether they exceeded the planned expenses or managed to save some money- - how did they manage this; What they would like to do in the future to plan their budget effectively. STUDENT NAME DATE BUDGET MONTH 01-30 April 2021 MONTHLY INCOME BUDGETED (AED) ACTUAL (AED) Earned Income Any other Income TOTAL INCOME (1) MONTHLY EXPENDITURE BUDGETED (AED) ACTUAL (AED) FIXED EXPENSES…All of the accounts payable are for inventory purchases and all inventory items are purchased on account. What are the estimated cash disbursements for inventories for the budget period? * (1 Point) Sample format: 1,111,111 NUBD Co., a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: Budgeted data: Cost of goods sold Desired decrease in inventories Desired decrease in accounts payable P1,680,000 P80,000 P150,000
- [The following information applies to the questions displayedbelow.]We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 04WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company has forecast production for the next three months as follows: July5,000 units, August 6,000 units, September 3,500 units. Monthly manufacturingoverhead is budgeted to be $20,000 plus $5 per unit produced. What isbudgeted manufacturing overhead for July?What is the basic difference between a master budget and a flexible budget? Master budget is for five year period and flexible budget is for one year period. Master budget is on financial terms and flexible budget is on quantitative terms. Master budget is for specific capacity and flexible budget is for multiple capacity. Master budget is prepared on actuals and flexible budget is based on standards. Submit You have used 0 of 2 Save attemptsPlease show how (step-by-step) you get the numbers for each account in the Flexible budget column. Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Planning Budget Variances Customers served........................................ 24,000 25,000 Revenue ($3.60q)......................................... $85,700 $90,000 $4,300 U Expenses: Wages and salaries ($22,200 + $1.20q)...... 48,900 52,200 3,300 F Supplies ($0.50q)...................................... 13,000 12,500 500 U Insurance ($5,700)..................................... 5,600 5,700 100 F Miscellaneous expense ($4,500 +…