Master flexible budget for manufacturing company with variance analysis in Excel

General information for the business: Selling and dispatching products out of a warehouse, Industry: Food and Beverage Analysis tool: Excel Description of analysis: The master budget is a network consisting of many separate budgets that are interdependent. This network is illustrated in Exhibit 8-2. The sales budget: Nearly all other parts of the master budget are dependent in some way on the sales budget. A sales budget is a detailed schedule of expected sales for coming periods; it is usually expressed in both dollars and units. Once the sales budget has been set; a decision can be made on the level of production that will be needed to support sales, and the production budget can be set as well. The production budget then becomes a key factor in the determination of other budgets, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget. These budgets, in turn, are needed to assist in formulating a cash budget for the budget. Sales forecasting-a critical step Extra notes: Create a flexible budget base for a manufacturing company with variance analysis. See attached example.