Case 3GG Industrial is a new manufacturing company and is in the process of preparing itsmanufacturing overhead budget for 2023. The budgeted sales for 2023 is RM250,000 where theexpected selling price is RM5 per unit.ItemsVariable costTotal fixedper unit (RM)1.501.20costs (RM)Indirect materialsSuppliesIndirect labour0.6078,00045,00024,000Plant utilities0.20Repair and maintenanceDepreciation on plant and equipmentInsurance on plant and equipmentPlant supervisor0.7046,00025,00076,000Required1. Prepare the manufacturing overhead budget for the company for the upcoming year.2. Since the company is just established, explain to the management of the company theimportance of a budget.

Manufacturing overhead means all type of indirect costs incurred for the manufacturing and…

Case 3 GG Industrial is a new manufacturing company and is in the process of preparing its manufacturing overhead budget for 2023. The budgeted sales for 2023 is RM250,000 where the expected selling price is RM5 per unit. Items Variable cost Total fixed per unit (RM) 1.50 costs (RM) Indirect materials Supplies Indirect labour Plant utilities Repair and maintenance Depreciation on plant and equipment Insurance on plant and equipment Plant supervisor 1.20 78,000 45,000 24,000 0.60 0.20 0.70 46,000 25,000 76,000 Required 1. Prepare the manufacturing overhead budget for the company for the upcoming year. 2. Since the company is just established, explain to the management of the company the importance of a budget.

Case 3 GG Industrial is a new manufacturing company and is in the process of preparing its manufacturing overhead budget for 2023. The budgeted sales for 2023 is RM250,000 where the expected selling price is RM5 per unit. Items Variable cost Total fixed per unit (RM) 1.50 costs (RM) Indirect materials Supplies Indirect labour Plant utilities Repair and maintenance Depreciation on plant and equipment Insurance on plant and equipment Plant supervisor 1.20 78,000 45,000 24,000 0.60 0.20 0.70 46,000 25,000 76,000 Required 1. Prepare the manufacturing overhead budget for the company for the upcoming year. 2. Since the company is just established, explain to the management of the company the importance of a budget.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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