Chris Corporation has developed the following flexible budget formula for the linear annual indirect labor cost: Total cost = P 12,000 + .75 per machine hour Operating budgets for the current month are based upon 10,000 machine hours of planned machine time. Indirect labor cost in this monthly planning budget are: a. P 7,500 b. P 8,500 c. P 17,500 d. P 19,500
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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