ABC Company budgeted total variable costs at $250,400 for the current year. In addition, they budgeted costs for (a) factory rent at $325,000; (b) depreciation of office equipment at $20,000; (c) office rent at $140,000; and (d) depreciation of factory equipment at $60,616. All of the above costs were based upon estimated 50,080 machine hours. At the end of the accounting period, the Factory Overhead Control had a balance of $650,625. Actual machine hours were 53,210. What was the over or underapplied factory overhead for the period? $24,062 overapplied $45,312 underapplied $24,062 underapplied $25,142 overapplied
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.
ABC Company budgeted total variable costs at $250,400 for the current year. In addition, they budgeted costs for (a) factory rent at $325,000; (b)
$24,062 overapplied
$45,312 underapplied
$24,062 underapplied
$25,142 overapplied
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