Assume the following information for Jenkins Inc.: Total flexible budget direct materials costs: $5,000 Standard quantity of direct materials per unit: 40 items Budgeted production: 300 units Total actual direct materials costs: $4,500 Actual quantity of direct materials per unit: 42 items Actual production: 250 units What is Jenkins’ direct materials efficiency variance? (do not round intermediate calculations, round final answer to the nearest cent)
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.
Assume the following information for Jenkins Inc.:
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Total flexible budget direct materials costs:
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$5,000
|
|
Standard quantity of direct materials per unit:
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40 items
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|
Budgeted production:
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300 units
|
|
Total actual direct materials costs:
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$4,500
|
|
Actual quantity of direct materials per unit:
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42 items
|
|
Actual production:
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250 units
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What is Jenkins’ direct materials efficiency variance? (do not round intermediate calculations, round final answer to the nearest cent)
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