Regal Furnitures produces and sells high-quality reading tables. One of the very popular models in the reading table lineup is RT360. The management accountant of the company is in the process of preparing its Selling and Administrative Expense Budget for the first quarter of the year. The following budget data are available: Assume that all of these expenses (except depreciation) are paid in cash in the month they are incurred. Answer the following questions: a) If Regal Furnitures has budgeted to sell 19,000 RT360 tables in January, then what will be the total budgeted selling and administrative expenses for January? b) If the company has budgeted to sell 16,000 RT360 tables in February, then what will be the budgeted total cash disbursements for selling and administrative expenses for February? c) If the budgeted total cash disbursements for selling and administrative expenses for March total Tk. 459,200, then how many RT360 table does the company plan to sell in March?
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.
Regal Furnitures produces and sells high-quality reading tables. One of the very popular models in the reading table lineup is RT360. The
Assume that all of these expenses (except depreciation) are paid in cash in the month they are incurred.
Answer the following questions:
a) If Regal Furnitures has budgeted to sell 19,000 RT360 tables in January, then what will be the total budgeted selling and administrative expenses for January?
b) If the company has budgeted to sell 16,000 RT360 tables in February, then what will be the budgeted total cash disbursements for selling and administrative expenses for February?
c) If the budgeted total cash disbursements for selling and administrative expenses for March total Tk. 459,200, then how many RT360 table does the company plan to sell in March?
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