Company’s fixed factory overhead is budgeted at $300,000 for the year on an expected annual production level of 5,000 units. Each unit of finished product requires three (3) standard direct labor hours. Actual production in units: 4,950 units Actual direct labor hours worked 15,100 hours Actual fixed factory overhead costs incurred: $298,000 CALCULATE FIXED FACTORY OVERHEAD ALLOCATED: CALCULATE FIXED FACTORY OVERHEAD SPENDING (PRICE VARIANCE):
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.
Company’s fixed factory
Actual production in units: 4,950 units
Actual direct labor hours worked 15,100 hours
Actual fixed
- CALCULATE FIXED FACTORY OVERHEAD ALLOCATED:
- CALCULATE FIXED FACTORY OVERHEAD SPENDING (PRICE VARIANCE):
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