Colorado Slim Company uses an Activity-based Costing System and has budgeted the following overhead activities and costs for the year:ActivityBudgeted CostDriverBudgeted DriverRateSetup $ 400,000 # of setups400 setupsInspection $ 48,000 Inspect. Hours4,000 Inspection HoursGrinding $ 130,000 Machine Hours130,000 Machine HoursReceiving $ 50,000 # of Parts12,500 parts usedThe company produces two different products called Red and Blue. The following information was collected during the month of May:RedBlueNumber of units completed180800Number of setups for the month119Number of inspection hours for the month400900Number of machine hours for the month1,2004,000Number of parts used in May3101,600Required: Calculate the rates in the table above and assign the appropriate overhead cost for May to the two products in the table below.RedBlueSetup Costs _________ ____________Inspection Costs __________ ____________Grinding Costs___________ ____________Receiving Costs ___________ ___________
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.
Colorado Slim Company uses an Activity-based Costing System and has budgeted the following overhead activities and costs for the year:ActivityBudgeted CostDriverBudgeted DriverRateSetup $ 400,000 # of setups400 setupsInspection $ 48,000 Inspect. Hours4,000 Inspection HoursGrinding $ 130,000 Machine Hours130,000 Machine HoursReceiving $ 50,000 # of Parts12,500 parts usedThe company produces two different products called Red and Blue. The following information was collected during the month of May:RedBlueNumber of units completed180800Number of setups for the month119Number of inspection hours for the month400900Number of machine hours for the month1,2004,000Number of parts used in May3101,600Required: Calculate the rates in the table above and assign the appropriate overhead cost for May to the two products in the table below.RedBlueSetup Costs _________ ____________Inspection Costs __________ ____________Grinding Costs___________ ____________Receiving Costs ___________ ___________
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