A company’s planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials $110000 Depreciation $60000 Indirect labor 170000 Taxes 10000 Factory supplies 17000 Supervision 50000 A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of $237600. $297000. $357600. $333600.
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.
A company’s planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company budgeted the following
| Variable | Fixed | |||
| Indirect materials | $110000 | $60000 | ||
| Indirect labor | 170000 | Taxes | 10000 | |
| Factory supplies | 17000 | Supervision | 50000 |
A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of
|
|
$237600. |
|
|
$297000. |
|
|
$357600. |
|
|
$333600. |
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