Actual total manufacturing overhead divided by budgeted activity level of application base Actual total manufacturing overhead divided by actual activity level of application base Budgeted total manufacturing overhead divided by actual activity level of application base Budgeted total manufacturing overhead divided by budgeted activity level of application base A company absorbs overheads based on labour hours. Data for the latest period are as follows: - Budgeted fixed overheads $148,750 Budgeted labour hours 8,500 Actual fixed overheads $146,200 Actual labour hours 7,928 What is the amount of under-/over-absorbed overhead?
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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