A company manufactures toy airplanes Information on its labor costs follow Sales commissions P5 per plane Administration P10,000 per month Indirect factory labor P 3 per plane Direct factory labor P5 per plane The following information applies to the upcoming month of July Budgeted production 1,200 units Budget sales 1,000 units What amount of budgeted labo
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.
22. A company manufactures toy airplanes Information on its labor costs follow
Sales commissions P5 per plane
Administration P10,000 per month
Indirect factory labor P 3 per plane
Direct factory labor P5 per plane
The following information applies to the upcoming month of July
Budgeted production 1,200 units
Budget sales 1,000 units
What amount of budgeted labor cost would appear in the July selling general, administrative expense budget?
a. P10,000
b. P16,000
c. P15.000
d. P23,000
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