Department Budget $ Yearly Budget Manufacturing Operations Direct Labor $4,080,000 Direct Material $1,590,000 Indirect Material $150,000 Indirect Labor $375,000 Plant Rent $192,350 Plant Depreciation $220,000 Accounts Payable $75,000 Department Consumables $68,400 Manufacturing VP $70,000 Sales Forecast (units) Product 1 Product 2 Total 12,000 10,500 Planned Operational Data Product 1 Product 2 Sales Price per unit $250 $175 Direct Material $ per unit 80 60 Direct labor hrs per unit 9 11 Direct Labor rate per hour $20.00 $20.00 What is Product 1 product cost?
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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