Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead………………………$357,000 Machine hours………………..140,000 Direct labor hours…………….17,000 Actual: Overhead……………………..$355,000 Machine hours……………….137,000 Direct labor hours……………16,500 Prime cost……………………$753,500 Number of units…………….250,000 Overhead is applied on the basis of direct labour hours. 1.What was last year’s per unit product cost? a. $1.39 b. $4.40 c. $4.43 d. $3.01 2.Non-unit-level drivers are prominent in activity-based coting systems. Which of the following is a non-unit-level driver? a. Machine hours b. Direct materials c. Assembly hours d. Setup hours
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.
Cushing, Inc., costs products using a normal costing system. The following data are available for last year:
Budgeted:
Overhead………………………$357,000
Machine hours………………..140,000
Direct labor hours…………….17,000
Actual:
Overhead……………………..$355,000
Machine hours……………….137,000
Direct labor hours……………16,500
Prime cost……………………$753,500
Number of units…………….250,000
Overhead is applied on the basis of direct labour hours.
1.What was last year’s per unit product cost?
a. $1.39
b. $4.40
c. $4.43
d. $3.01
2.Non-unit-level drivers are prominent in activity-based coting systems. Which of the following is a non-unit-level driver?
a. Machine hours
b. Direct materials
c. Assembly hours
d. Setup hours
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 3 images
