Delaware Corp. prepared a master budget that included $18,360 for direct materials, $28,200 for direct labor, $15,700 for variable overhead, and $39,400 for fixed overhead. Delaware Corp. planned to sell 4,080 units during the period, but actually sold 4,380 units. What would Delaware’s direct materials cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.) Multiple Choice $19,710 $18,375 $77,115 $17,133
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.
Delaware Corp. prepared a
Multiple Choice
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$19,710
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$18,375
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$77,115
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$17,133
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