. An analysis of clerical costs in the billing department of Craig Company indicates that total unit (variable and fixed) processing costs will be P.50 per account processed at an activity level of 32,000 accounts. When only 22,000 accounts are processed, the total cost of processing is P12,500. Given these data, at a budgeted level of 25,000 accounts a. Processing costs will total P8,750 b. Fixed processing costs will be P10,400 c. The variable processing costs will equal P.35 per account processed d. Processing costs will total P14,975
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.
9. An analysis of clerical costs in the billing department of Craig Company indicates that total unit (variable and fixed)
a. Processing costs will total P8,750
b. Fixed processing costs will be P10,400
c. The variable processing costs will equal P.35 per account processed
d. Processing costs will total P14,975
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