130 Maker Co. uses a standard cost system and prepared the following budget at normal capacity for January Direct labor hours (DLH) Total factory overhead/DLH Variable factory OH Fixed factory OH 24,000 P6.50 P 48,000 P108,000 During January, 22,000 DLH is worked at total factory overhead cost of P147,000. The standard DLH allowed for capacity attained 21,000 hours. Using the 2 way analysis of overhead variances, the budget (controllable) variance for January is? 8. P9,000 F C. P 10,500 U D. P13,500 U E. answer not given A. P3,000 F
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.
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