Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $572,000 with 474,000 estimated direct labor hours. It is further estimated that small table lamp production will require 276,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours.
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.
Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory
Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to desk lamp production if actual direct labor hours for the period for desk lamps is 225,000 would be
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