The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted sales revenue $205,000 Actual Manufacturing Overhead $340,000 Budgeted machine hours ( based on capacity) 10,000 Budgeted direct-labor hours (based on capacity) 20,000 Budgeted direct-labor rate $14 Budgeted manufacturing overhead $364,000 Actual machine hours 11,000 Actual direct-labor hours 18,000 Actual direct-labor rate $15 Calculate the overapplied or underapplied overhead for the year using each of the following common cost drivers: a) machine hours, b) direct-labor hours, and c) direct-labor dollar
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 data pertain to the Oneida Restaurant Supply Company for the year just ended.
| Budgeted sales revenue | $205,000 |
| Actual Manufacturing |
$340,000 |
| Budgeted machine hours ( based on capacity) | 10,000 |
| Budgeted direct-labor hours (based on capacity) | 20,000 |
| Budgeted direct-labor rate | $14 |
| Budgeted manufacturing overhead | $364,000 |
| Actual machine hours | 11,000 |
| Actual direct-labor hours | 18,000 |
| Actual direct-labor rate | $15 |
Calculate the overapplied or underapplied overhead for the year using each of the following common cost drivers: a) machine hours, b) direct-labor hours, and c) direct-labor dollars.
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