Budgeted information relating to two departments in Blair's Chairs Limited for the next period is as follows: Production Direct Department overhead 1 2 Direct Direct material cost labour cost labour hours £ £ £ 270,000 18,000 67,500 36,000 13,500 100,000 Machine hours 2,700 45,000 25,000 300 Individual direct labour workers within each department earn differing rates of pay according to their skills, grade and experience. B) $ per machine hour C) Per cent of direct labour cost D) $ per direct labour hour What is the most appropriate production overhead absorption method for Department 1? A) $ per machine hour B) $ per direct labour hour C) Per cent of direct material cost D) Per cent of direct labour cost What is the most appropriate production overhead absorption method for Department 2? A) Per cent of direct material cost
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.
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