Avayal Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows Indirect labor Indirect materials Utilities Fixed overhead costs per month are Supervision $4,960, Depreciation $1,488, and property Taxes $992. The company believes it will normally operate in a range of 8,680-12.400 direct labor hours per month Assume that in July 2025, Ayayai Company incurs the following manufacturing overhead costs Variable Costs Indirect labor $1.00 0.70 0.40 Indirect materials Utilities Fixed Costs $10.912 Supervision 7,192 Depreciation 3,968 Property taxes $4,960 1,488 992 (a) Prepare a flexible budget performance report, assuming that the company worked 11.160 direct labor hours during the month (List variable costs before fixed costs)

Q: What is make-whole provision?

A: A call provision helps the issuer of the bond to call back or repurchase the bond at any time before…

Q: How is ARR calculated?

A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: What are ADRs?

A: Answer: An American depositary receipt (ADR) is a negotiable asset that denotes a non-US company…

Q: Explain NAREIT Index?

A: NAREIT Index Rate: It implies the compound dividend yield which is communicated as far as a yearly…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is PNL?

A: The term PNL is used in accounting, finance, and business to refer profit and loss.

Q: What is GAAP and how does it work

A: The accounting is based on various principles that are defined by GAAP or IFRS.

Q: Whatisthedifferencebetweensimpleinterestandcompoundinterest?

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: Explain put option

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: Describe Caveats?

A: A notice that is given to the court that it must give caveator a fair hearing before making any…

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.