In the Assembly Department of Cobb Company, budgeted and actual manufacturing overhead costs for the month of April 2010 were as follows. Budget Actual Indirect materials $15,000 $14,300 Indirect labor 20,000 20,600 Utilities 10,000 10,750 Supervision 5,000 5,000
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.
In the Assembly Department of Cobb Company, budgeted and actual
|
Budget |
Actual |
|
|
Indirect materials |
$15,000 |
$14,300 |
|
Indirect labor |
20,000 |
20,600 |
|
Utilities |
10,000 |
10,750 |
|
Supervision |
5,000 |
5,000 |
All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.
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