. For budgeting and controlling purposes, the following data for the past 12 months of operations were presented to the controller of Selyu Company: Sum of direct labor hours Sum of the mixed costs Sum of the hours x costs Sum of mixed costs squared Sum of direct labor hours squared 840 9,000 655,000 50,800 63,800 The company uses least squares method in segregating fixed and variable costs. How much is the variable cost per hour? A. 3.125 C. 3.75 B. 3.50 D. 5.00 E. 10.00
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 answer is D. 5.00 . How to solve?
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