Infromation on Pio's FOH costs for the May 2020 production activity is as follows: Budgeted Fixed FOH:150,000 Std. Fixed FOH rate per DL hr.: 3 Std. Variable FOH rate per DL hr.: 6 Std. DL hours allowed for actual production: 48,000 Actual Total FOH: 440,000 Pio has a standard absorption and a flexible budget system and uses the two variance method for FOH variances. What is the volume variance for MAy 2020? A. 6,000 U B. 6,000 F C. 8,000 U D. 8,000 F
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.
Infromation on Pio's FOH costs for the May 2020 production activity is as follows:
Budgeted Fixed FOH:150,000
Std. Fixed FOH rate per DL hr.: 3
Std. Variable FOH rate per DL hr.: 6
Std. DL hours allowed for actual production: 48,000
Actual Total FOH: 440,000
Pio has a standard absorption and a flexible budget system and uses the two variance method for FOH variances. What is the volume variance for MAy 2020?
A. 6,000 U
B. 6,000 F
C. 8,000 U
D. 8,000 F
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