Budgeted fixed overhead is 300,000 per quarter and overhead rates are computed based on DL hrs. For 6-month period, the actual fixed overhead is 560,000 and actual VOH is 30,000. Each product requires 10 yards of material and 4 DL hours. Assuming that standard variable cost per unit of product is P 10; actual and standard direct labor hours are 20,000 DL hrs and 22, 000 DL hrs, respectively, what is the budget variance? Choose from the following choices of answer: 230,000 favorable 230,000 unfavorable 65,000 favorable 120,000 favorable None of the above
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.
Budgeted fixed
Choose from the following choices of answer:
- 230,000 favorable
- 230,000 unfavorable
- 65,000 favorable
- 120,000 favorable
- None of the above
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