Fueled by Caffeine Company is a manufacturer of travel mugs. Fueled has recently experienced turnover in its accounting department and is unable to find documentation of the prior period standard rate per direct labor hour. The company needs this information to begin the budgeting process for the next period. Fueled has determined that the total direct labor variance in the prior period was an unfavorable $390 and that direct laborers were paid $0.50 more per hour than expected. Management expected 5,200 direct labor hours to be logged during production based on the actual number of travel mugs produced; however, 260 less actual direct labor hours were logged during production. What was the prior period's actual direct labor rate per hour? O A. $8.00 per direct labor hour O B. $9.00 per direct labor hour OC. $12.00 per direct labor hour O D. $8.50 per direct labor hour O E. $11.50 per direct labor hour
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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