Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 2,400 machine-hours Supplies Indirect labor $10,560 19,920 Fixed overhead costs: Supervision 15,600 5,800 6,800 Utilities Depreciation Total overhead cost $58,680 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,300 machine-hours rather than 2,400 machine-hours?
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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