A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. The activity rate for Purchasing is: Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Purchasing $ 405,000 Purchase orders 13,500 purchase orders Factory services 96,000 Square feet 15,000 square feet Setup 195,000 Setups 150 Setups Multiple Choice $6.40 per square foot. $27.00 per purchase order. $1,300.00 per setup. $30.00 per purchase order. $27.00 per square foot.
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 manufacturer uses activity-based costing to assign
Multiple Choice
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$6.40 per square foot.
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$27.00 per purchase order.
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$1,300.00 per setup.
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$30.00 per purchase order.
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$27.00 per square foot.
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