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The master budget at Windsor, Inc., last period called for sales of 90,000 units

ID: 2482982 • Letter: T

Question

The master budget at Windsor, Inc., last period called for sales of 90,000 units at $25.30 each. The costs were estimated to be $10.00 variable per unit and $600,000 fixed. During the period, actual production and actual sales were 84,000 units. The selling price was $23.70 per unit. Variable costs were $11.00 per unit. Actual fixed costs were $600,000.

Prepare a flexible budget for Windsor.

The master budget at Windsor, Inc., last period called for sales of 90,000 units at $25.30 each. The costs were estimated to be $10.00 variable per unit and $600,000 fixed. During the period, actual production and actual sales were 84,000 units. The selling price was $23.70 per unit. Variable costs were $11.00 per unit. Actual fixed costs were $600,000.

Explanation / Answer

PREPARATION OF FLEXIBLE BUDGET:

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                                                                                         STATIC                   FLEXIBLE