Assume that Norio recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:
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.
Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June is as follows:
| Budgeted units of Flex 10 for June | 6,500 | |||
| Budgeted usage of PPS | 58,500 | pounds | ||
| Actual number of units of Flex 10 manufactured | 5,600 | |||
| PPS purchased | 72,000 | pounds | ||
| PPS used | 54,000 | pounds | ||
| Total actual cost of PPS used | $ | 332,640 | ||
| Direct materials usage variance | $ | 36,000 | unfavorable | |
Assume that Norio recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:
rev: 11_08_2018_QC_CS-147544, 11_19_2020_QC_CS-241629
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$276,480 favorable.
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$106,108 favorable.
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$74,536 favorable.
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$130,000 favorable.
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$92,236 favorable.
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