Great Inc. manufactures a single product. The following data relates to January 2018: Actual Static Budget Production 3,200 units 22,200 hours $9,560 $42,890 3,500 units 20,300 hours $12,180 $45,675 Machine hours Variable overhead costs Fixed overhead costs What is the fixed overhead volume variance in January, assuming overhead is applied based on machine 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.
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