Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s production requirements. The variable manufacturing overhead rate used for budgeting purposes is $3.00 per direct labor-hour. The total budgeted cash disbursements for manufacturing overhead in July is $82,000. The total fixed manufacturing overhead included in the manufacturing overhead budget for July is $60,000. What is the amount of depreciation included in the manufacturing overhead budget for July?
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.
Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s production requirements. The variable manufacturing
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