Budgeted sales revenue ............................................................................$205,000Actual manufacturing overhead ..............................................................340,000Budgeted machine hours (based on practical capacity) ..................10,000Budgeted direct-labor hours (based on practical capacity) .......... 20,000Budgeted direct-labor rate .........................................................................$ 14Budgeted manufacturing overhead .......................................................$364,000Actual machine hours ......................................................................................11,000Actual direct-labor hours ..............................................................................18,000Actual direct-labor rate ...................................................................................... $ 15 Refer to the data given above for Oneida Restaurant Supply Company. Prepare a journal entry to add to work-in-process inventory the total manufacturing overhead cost for the year, assuming:1. The firm uses actual costing.2. The firm uses normal costing, with a predetermined overhead rate based on machine 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.
Budgeted sales revenue ............................................................................$205,000
Actual manufacturing
Budgeted machine hours (based on practical capacity) ..................10,000
Budgeted direct-labor hours (based on practical capacity) .......... 20,000
Budgeted direct-labor rate .........................................................................$ 14
Budgeted manufacturing overhead .......................................................$364,000
Actual machine hours ......................................................................................11,000
Actual direct-labor hours ..............................................................................18,000
Actual direct-labor rate ...................................................................................... $ 15
Refer to the data given above for Oneida Restaurant Supply Company. Prepare a
1. The firm uses actual costing.
2. The firm uses normal costing, with a predetermined overhead rate based on machine hours.
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