The following budget data are available for Sharp Company: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $179,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $181,000 If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is a.$180,000 b.$172,500 c.$181,000 d.$184,000
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.
The following budget data are available for Sharp Company:
| Estimated direct labor hours | 12,000 |
| Estimated direct labor dollars | $90,000 |
| Estimated |
$179,000 |
| Actual direct labor hours | 11,500 |
| Actual direct labor dollars | $92,000 |
| Actual factory overhead costs | $181,000 |
If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is
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