Flexible Budget for Varying Levels of Activity Nashler Company has the following budgeted variable costs per unit produced: Direct materials $7.20 Direct labor 1.54 Variable overhead: Supplies 0.23 Maintenance 0.19 Power 0.18 Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000. In March, Nashler Company produced 160,000 units and had the following actual costs: Direct materials $1,147,000 Direct labor 252,900 Supplies 37,400 Maintenance 30,340 Power 28,720 Supervision 99,500 Depreciation 76,000 Other overhead 244,300 Required:
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.
Flexible Budget for Varying Levels of Activity
Nashler Company has the following budgeted variable costs per unit produced:
| Direct materials | $7.20 |
| Direct labor | 1.54 |
| Variable overhead: | |
| Supplies | 0.23 |
| Maintenance | 0.19 |
| Power | 0.18 |
Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000.
In March, Nashler Company produced 160,000 units and had the following actual costs:
| Direct materials | $1,147,000 |
| Direct labor | 252,900 |
| Supplies | 37,400 |
| Maintenance | 30,340 |
| Power | 28,720 |
| Supervision | 99,500 |
| Depreciation | 76,000 |
| Other overhead | 244,300 |
Required:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
