The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results. Actual Flexible Results Sales volume (in units) Budect Static Budget 40,000 60,000 Sales revenues $1,000,000 Variable costs 780.000 Contribution margin 220,000 $1,200,000 1.125.000 750,000 Fixed costs 158.000 Operating profit $62,000 20.000 $5,000 The flexible budget will report, O $900,000 $750,000 O $600.000 O $780.000 O $480,000 Question 13 for variable costs 3.3 pts
The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results. Actual Flexible Results Sales volume (in units) Budect Static Budget 40,000 60,000 Sales revenues $1,000,000 Variable costs 780.000 Contribution margin 220,000 $1,200,000 1.125.000 750,000 Fixed costs 158.000 Operating profit $62,000 20.000 $5,000 The flexible budget will report, O $900,000 $750,000 O $600.000 O $780.000 O $480,000 Question 13 for variable costs 3.3 pts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget
for August. Shelley Company is in the process of preparing the flexible budget and understanding the results.
Actual
Flexible
Static
Results
Budect
Budget
Sales volume (in units)
40,000
60,000
Sales revenues
$1,000,000
Variable costs
780.000
$1,200,000
1.125.000
Contribution margin
220,000
750,000
Fixed costs
Operating profit
158.000
$62,000
20.000
$5,000
The flexible budget will report,
for variable costs
O $900,000
$750,000
O $600.000
O $780.000
O $480,000
Question 13
hp
3.3 pts
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