Acme Company's production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Actual unit component costs incurred during August include direct materials, $8.50; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" no effect (i.e., zero variance).) Cost Component Direct materials Direct labor Variable overhead Fixed overhead Original Budget Flexed Budget Actual Cost (19,368 (17,800 units) (19,368 units) units) Budget Variance

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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.