Hughes Company uses the equation $375,000 + $1.20 per direct labor hour to budget manufacturing overhead. Hughes had budgeted 75,000 direct labor hours for the year. Actual results were 81,000 direct labor hours, $397,000 fixed overhead, and $94,500 variable overhead. The total overhead variance for the year is Group of answer choices $10,700 $2,700 $22,000 $30,000
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.
38. Hughes Company uses the equation $375,000 + $1.20 per direct labor hour to budget manufacturing
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