B. The Charito Company is planning an overhead budget cost for May and June, 2021. Past cost studies indicates that costs have followed behavior patterns as given below: Variable rate per hour Indirect materials PO.90 Heat, light & power 1.20 Repairs & maintenance Lubrication 4.60 0.50 In addition, management has estimated fixed factory overhead as follows per month: Supervision Indirect labor P44,000 36,000 Heat, light and power Repairs & maintenance Taxes & insurance 14,500 17,200 9,000 During May and June, 2021, the company plans to manufacture 150,000 units of product. Products are produced a the rate of 6 units per hour. Normal plant capacity is 15,000 hours per month.
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.
Step by step
Solved in 2 steps
