Freetown Corporation budgeted fixed manufacturing costs of $34,000 during 2020. Other information for 2020 includes: The budgeted denominator level is 2,400 units. Units produced total 1,500 units. Units sold total 1,300 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold. The production−volume variance is ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) Question content area bottom Part 1 A. $2,834 B.
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.
Freetown Corporation budgeted fixed
The budgeted denominator level is 2,400 units.
Units produced total 1,500 units.
Units sold total 1,300 units.
Beginning inventory was zero.
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
The
production−volume
variance is ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Question content area bottom
Part 1
A.
$2,834
B.
$15,587
C.
$12,753
D.
$0
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