Variable overhead cost: Indirect factory labor $160,000 Power and light 12,000 Indirect materials 64,000 Total variable overhead cost $256,000 Fixed overhead cost: Supervisory salaries $80,000 Depreciation of plant and equipment 50,000 Insurance and property taxes 32,000 Total fixed overhead cost 162,000 Total factory overhead cost $418,000
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.
Flexible
Leno Manufacturing Company prepared the following
cost
during which it expected to require 20,000 hours of productive capacity
in the department:
Assuming that the estimated costs for November are the same as for
October, prepare a flexible factory overhead cost budget for the Press
Department for November for 18,000, 20,000, and 22,000 hours of
production.
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