Star Company has a standard absorption and flexible budgeting system. Selected data for November 2020 production activity Is as follows: Budgeted fixed overhead cost P64,000 Actual overhead incurred P230,000 Variable factory overhead rate per direct labor hour P5 Actual direct labor hours 32,000 What is the total spending variance? Select one: P1,000 U P6,000 U P6,000 F P1,000 F
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.
Star Company has a standard absorption and flexible budgeting system. Selected data for November 2020 production activity Is as follows:
Budgeted fixed
Actual overhead incurred P230,000
Variable factory overhead rate per direct labor hour P5
Actual direct labor hours 32,000
What is the total spending variance?
Select one:
- P1,000 U
- P6,000 U
- P6,000 F
- P1,000 F
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