A company s planned activity level for next year is expected to be 100000 machine hourS. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect $220000 Depreciation $50000 materials Indirect labor 250000 Taxes 10000 Factory supplies 30000 Supervision 40000 A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of $550000. O $450000. $500000. O $540000.
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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