Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data Gordon Company’s controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost: Required: 1. Link each term in column A to the corresponding term in column B. 2. If next month’s budgeted direct labor hours equal 8,000, what is the budgeted overhead cost? 3. If next quarter’s budgeted direct labor hours equal 23,000, what is the budgeted overhead cost? 4. If next year’s budgeted direct labor hours equal 99,000, what is the budgeted overhead cost? Exercise
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.
Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data Gordon Company’s controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost:
Required:
1. Link each term in column A to the corresponding term in column B.
2. If next month’s budgeted direct labor hours equal 8,000, what is the budgeted overhead cost?
3. If next quarter’s budgeted direct labor hours equal 23,000, what is the budgeted overhead cost?
4. If next year’s budgeted direct labor hours equal 99,000, what is the budgeted overhead cost? Exercise
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