Cullumber Company expects to produce 1,320,000 units of product XX in 2022. Monthly production is expected to range from 89,400 to 133,200 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4, and for supervision, $1. In March 2022, the company incurred the following costs in producing 111,300 units: direct materials $359,900, direct labor $661,800, and variable overhead $1,119,000. Actual fixed overhead equaled budgeted fixed overhead. Budget CULLUMBER COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2022 Actual Difference Favourable Unfavourable Neither Favourabl nor Unfavourable
Cullumber Company expects to produce 1,320,000 units of product XX in 2022. Monthly production is expected to range from 89,400 to 133,200 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4, and for supervision, $1. In March 2022, the company incurred the following costs in producing 111,300 units: direct materials $359,900, direct labor $661,800, and variable overhead $1,119,000. Actual fixed overhead equaled budgeted fixed overhead. Budget CULLUMBER COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2022 Actual Difference Favourable Unfavourable Neither Favourabl nor Unfavourable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Cullumber Company expects to produce 1,320,000 units of product XX in 2022. Monthly production is expected to range from 89,400
to 133,200 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labor $6, and overhead $10.
Budgeted fixed manufacturing costs per unit for depreciation are $4, and for supervision, $1. In March 2022, the company incurred the
following costs in producing 111,300 units: direct materials $359,900, direct labor $661,800, and variable overhead $1,119,000. Actual
fixed overhead equaled budgeted fixed overhead.
$
$
Budget
$
$
CULLUMBER COMPANY
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2022 ✓
$
Actual
$
$
$
$
Difference
Favourable
Unfavourable
Neither Favourabl
nor Unfavourable
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