Question

the master budget at western company last period called for sales of 245,000 units at $10.00 each. the costs were estimated to be $3.00 variable per unit and $270,000 fixed. during the period, actual production and actual sales were 250,000 units. the selling price was $10.10 per unit. variable costs were $3.75 per unit. actual fixed costs were $270,000. required: prepare a flexible budget for western.

Answer 1

To prepare a flexible budget for Western Company, calculate the expected sales revenue and total costs based on the actual production and sales.

Step-by-step explanation:

To prepare a flexible budget for Western Company, we need to calculate the expected sales revenue and total costs based on the actual production and sales.

1. Calculate the expected sales revenue by multiplying the actual unit sales by the selling price per unit.
2. Calculate the variable costs by multiplying the actual unit sales by the variable cost per unit.
3. Add the fixed costs to the variable costs to calculate the total costs.

Using the given information and calculations, you can prepare a flexible budget for Western Company.