Justine Company budgeted total variable overhead costs at P180,000 for the current period. In addition, they budgeted costs for factory rent at P215,000, costs for depreciation of office equipment at P12,000 costs for office rent at P92,000, and costs for depreciatio:n of factory equipment at P 38,000. All these costs were based upon estimated machine hours of 80,000. At the end of the period, the Factory Overhead control account had a balance of P 387,875. Actual machine hours were 74,000. 12. What was the over or underapllied factory overhead for the period? P 12,650 overapplied b. P 12,650 underapplied а. с. P 108,850 overapplied d P 108 850 underapplied
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.
Step by step
Solved in 2 steps with 1 images