Consider the flexible budget information relating to direct labor costs for Logan Ltd.: 48,000 units 50,000 units 52,000 units Machining $2.50 per unit $120,000 $125,000 $130,000 Finishing $1.50 per unit 72,000 75,000 78,000 $192,000 $200,000 $208,000 Logan’s actual production was 51,000 units and the related cost was $205,500. What is the direct labor variance?
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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