A factory had an activity level of 110% with the following output. Units Standard minutes each Product A 5,000 5 Product B 2,500 10 Product C 3,000 15 The budgeted direct labour cost was £5,000 Calculate: (i) The budgeted standard hours (ii) Budgeted labour cost per standard hour
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 factory had an activity level of 110% with the following output.
Units Standard minutes each
Product A 5,000 5
Product B 2,500 10
Product C 3,000 15
The budgeted direct labour cost was £5,000
Calculate:
(i) The budgeted standard hours
(ii) Budgeted labour cost per standard hour
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
