In a Master Budget, where the overhead allocation rate is based on direct labor hours, the Manufacturing Overhead Rate will be a. The Variable Manufacturing Overhead divided by Total Hours of Direct Labor b. The sum of Variable and Fixed Manufacturing Overhead divided by Total Hours of Direct Labor c. Total Manufacturing Overhead Costs divided by the Direct Labor Rate d. The Variable Manufacturing Overhead Rate divided by the Direct Labor
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.
In a
| a. |
The Variable Manufacturing Overhead divided by Total Hours of Direct Labor |
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| b. |
The sum of Variable and Fixed Manufacturing Overhead divided by Total Hours of Direct Labor |
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| c. |
Total |
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| d. |
The Variable Manufacturing Overhead Rate divided by the Direct Labor Rate |
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