Task 4

You are given the following information of Delilah Co for the month of June 2015.

Fixed Budget Actual

Sales and Production 1000 units 800 units
$ $ $ $
Sales 20,000 16,500
Variable cost
Direct material 8,000 7,300
Direct labour 4,000 2,900
Variable overhead 2,000 14,000 2,100 12,300
Contribution 6,000 4,200
Fixed cost 5000 5,400
Profit 1,000 (1,200)

4.1 Explain the process of creation of a Master Budget

4.2 Compare the actual income and expenditure and analyze performances of the above organization in
the comparison to their budget and suggest appropriate recommendations to improve performances