A company manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the actual direct labor hours are 2,120. The budgeted labor costs are $27,440, and the actual labor costs are $27,000. The company sold 4,513 t-shirts in January at a price of $21.5 per t-shirt. The budgeted revenue is 4,200 t-shirts or $84,000 for January. What is the company's output price variance for January? $2,240 Favorable $6,260 Favorable $6,770 Favorable $2,680 Favorable $6,770 Unfavorable $2,240 Unfavorable
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 manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the actual direct labor hours are 2,120. The budgeted labor costs are $27,440, and the actual labor costs are $27,000. The company sold 4,513 t-shirts in January at a price of $21.5 per t-shirt. The budgeted revenue is 4,200 t-shirts or $84,000 for January. What is the company's output price variance for January?
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