Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categories—direct materials and direct manufacturing labor—and one indirect-cost pool, manufacturing overhead costs. It provides the following information for 2017. Budgeted manufacturing overhead costs $960,000 Budgeted direct manufacturing labor-hours 32,000 hours Actual manufacturing overhead costs $992,000 Actual direct manufacturing labor-hours 31,000 hours Calculate the total manufacturing costs of the 32 Berndale Drive job using normal costing based on the following information: Actual direct materials costs $3,500 Actual direct manufacturing labor 160 hours Actual direct manufacturing labor rate $ 20 per hour
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.
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categories—direct materials and direct manufacturing labor—and one indirect-
Budgeted manufacturing overhead costs $960,000
Budgeted direct manufacturing labor-hours 32,000 hours
Actual manufacturing overhead costs $992,000
Actual direct manufacturing labor-hours 31,000 hours
Calculate the total manufacturing costs of the 32 Berndale Drive job using normal costing based on the following information:
Actual direct materials costs $3,500
Actual direct manufacturing labor 160 hours
Actual direct manufacturing labor rate $ 20 per hour
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