Beech Company produced and sold 115,000 units in May. For the level of production in May, budgeted amounts were sales, $1,210,000; variable costs, $835,000; and fixed costs, $270,000. The following actual results are available for May. Sales (115,000 units) Variable costs Fixed costs Actual Results $ 1,183,000 792,500 270,000 Prepare a flexible budget performance report for May. Indicate whether each variance is favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Contribution margin BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Variances Favorable or Unfavorable

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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.