A company makes a range of products with total budgeted manufacturing overheads of N$973 560 incurred in two production departments A, B and one service department C. Budgeted overheads incurred directly by department A, B and C are N$261 745, N$226 120 and N$147 195, respectively. The balance of budgeted overheads are apportioned to department A, B and C are 40%, 35% and 25%, respectively. Service department overheads are apportioned equally to each production department. The total amount to be apportioned to service department C is:
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.
A company makes a range of products with total budgeted manufacturing
The total amount to be apportioned to service department C is:
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