Planning : Master Budget Exercise in Companies

Sales /Revenue Budget

Product 1
Actual Budg
Last
et
Year
This
Year
North
Zone
South
Zone
East Zone
West Zone

Total

Product 2
Product 3
Total
Actual Budget Actual Budget Actual
Last
This
Last
This
Last
Year
Year
Year
Year
Year

Budget
This
Year

Production Required
Product 1
Actual Budg
Last
et
Year
This
Year
North
Zone
South
Zone
East Zone
West Zone

Total

Product 2
Product 3
Total
Actual Budget Actual Budget Actual
Last
This
Last
This
Last
Year
Year
Year
Year
Year

Budget
This
Year

Plant Operations to Deliver Supplies mentioned above

Plant 1
Capacity
Last Year

Utilisatio
n Last
Year

Plant 2
Capacity
Last Year

Total Capacity
Utilisation
Capacity
Utilisation
Last Year Last Year
Last Year

Chennai
Pune

Total
Material and Labour Requirements in Plants
Plant 1
Actual
Last Year
Chennai
Pune

Plant 2
Budgeted
Actual
This year Last Year

Budgeted
This year

Total
Actual
Last Year

Budgeted
This year

Total
Example of Labour Estimation
Total Number of Men: 200
Men work for 25 days in month ;
Every day they work for 8 hours
Total number of Labour hours available in the company during a year
Is equal to 200 men X 200 hours x12 months= 480000 hours.
Company manufactures three products :
Numbers of units
Hours Consumed by
each product
Total hours required

Product A
5000
25

Product B
7000
30

Product C
9000
20

125000

210000

180000

Additional Labour hours to be organized by hiring Casual Labourer :

Required Labour Hours
515000.
Available Labour Hours
480000.
Additional Labour Hour to be Organized 35000 hours.

515000