Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted variable costs are $60,000. What are the respective high and low indirect cost rates if budgeted professional labour hours are 9,000 for high-output months and 4,000 for low-output months?
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.
Hh2.
Account
Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted variable costs are $60,000.
What are the respective high and low indirect cost rates if budgeted professional labour hours are 9,000 for high-output months and 4,000 for low-output months?
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