Ace Widget Company is a process manufacturer. The company budgeted 11,500 direct labor hours, but it had actual direct labor hours of 12,000. The company produced 60,000 equivalent units, spending $300,000 on material. The labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. What is the total manufacturing cost per unit? a. $11.92 b. $15.00 c. $12.67 d. $13.00
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.
Ace Widget Company is a process manufacturer. The company budgeted 11,500 direct labor hours, but it had actual direct labor hours of 12,000. The company produced 60,000 equivalent units, spending $300,000 on material. The labor rate is $15 per hour, and
a. $11.92
b. $15.00
c. $12.67
d. $13.00
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