Hello, Silverstone's production budget for July called for making 39,800 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $35,024. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced 36,754 Fixed overhead costs incurred $37,700 a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July. (Round your answer to 2 decimal places. Predetermined overhead application rate ??? per machine hour. b. Calculate the fixed overhead applied to work in progress during July. (Do not round intermediate calculations). Applied overhead: ??? c. Calculate the over- or underapplied fixed overhead for July. (Do not round intermediate calculations). Fixed overhead: ???
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.
Hello,
Silverstone's production budget for July called for making 39,800 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed
| Units produced | 36,754 |
| Fixed overhead costs incurred | $37,700 |
a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July. (Round your answer to 2 decimal places.
| Predetermined overhead application rate | ??? | per machine hour. |
b. Calculate the fixed overhead applied to work in progress during July. (Do not round intermediate calculations).
Applied overhead: ???
c. Calculate the over- or underapplied fixed overhead for July. (Do not round intermediate calculations).
Fixed overhead: ???
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