Foxtrot reported $55,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,500 units. Standard variable manufacturing costs were $21 per unit, and total budgeted fixed manufacturing overhead was $170,000. If there were no variances, income under variable costing would be: Multiple Choice $42,250. $55,000. $62,250. $2,250. $102,250.
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.
MC Qu. 8-60 Foxtrot reported...
Foxtrot reported $55,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,500 units. Standard variable
-
$42,250.
-
$55,000.
-
$62,250.
-
$2,250.
-
$102,250.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
