Jewel Ltd manufactures four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period: Demand (units) 8,000 2,000 3,600 3,000 Income £ 40,000 20,000 27,000 38,400 Costs £ Material 12,000 8,000 12,000 12,000 Labour 12,000 6,000 8,000 15,000 Variable Overhead 2,000 1,000 1,700 2,400 Fixed Overhead 6,000 4,000 5,000 6,000 Labour is paid at £10 per hour and is limited to 3,800 hours for the period. Required: Calculate and determine the ranking with labour hours as the limiting factor of production.
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.
Question 2
Jewel Ltd manufactures four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period:
Demand (units) 8,000 2,000 3,600 3,000 Income £ 40,000 20,000 27,000 38,400 Costs £ Material 12,000 8,000 12,000 12,000 Labour 12,000 6,000 8,000 15,000 Variable Overhead 2,000 1,000 1,700 2,400 Fixed Overhead 6,000 4,000 5,000 6,000
Labour is paid at £10 per hour and is limited to 3,800 hours for the period.
Required:
Calculate and determine the ranking with labour hours as the limiting factor of production.
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