The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 20,000 19,000 Sales revenues $235,000 24 $230,000 Variable costs 154,000 24 185,000 Contribution margin $81,000 2$ $45,000 Fixed costs 37,000 2$ 35,000 Operating profit $44,000 2$ $10,000 The flexible budget will report for variable costs. O A. $146,300 OB. $185,000 OC. $31,000 O D. $194,737
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 20,000 19,000 Sales revenues $235,000 24 $230,000 Variable costs 154,000 24 185,000 Contribution margin $81,000 2$ $45,000 Fixed costs 37,000 2$ 35,000 Operating profit $44,000 2$ $10,000 The flexible budget will report for variable costs. O A. $146,300 OB. $185,000 OC. $31,000 O D. $194,737
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
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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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The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of
Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of
preparing the flexible budget and understanding the results.
ActualResults FlexibleBudget StaticBudget
Sales volume (in units)
20,000
19,000
Sales revenues
$235,000
2$
$230,000
Variable costs
154,000
$
185,000
Contribution margin
$81,000
2$
$45,000
Fixed costs
37,000
35,000
Operating profit
$44,000
2$
$10,000
The flexible budget will report
for variable costs.
O A. $146,300
O B. $185,0000
OC. $31,000
O D. $194,737
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