KPT Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is a.P23.00 b.P16.67 c.P38.00 d.P50.00
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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