Prepare a Flexible budget for overheads on the basis of the following data Ascertain the overbead rates at 50% and 60%% capacity. Variable overheads: At 60% capaciity (OMR) Indirect Matenal 6000 Labor 18000 Semi-variable overheads: Electricity (40% Fixed & 60% variable) 30000 Repairs (80% fixed & 20% Variable) 3000 Fixed overheads: Depreciation 16500 Insurance 4500 Salaries 15000 Total overheads 93000 Estimated direct labor hours 186000
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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