Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $13 per hour. During February, Madrid Co. paid $100,000 to employees for 9,160 hours worked. 2,450 units were produced during February. What is the flexible budget amount for direct labor? Multiple Choice $31,850 $100,000 $119,080 $127,400
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.
Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $13 per hour. During February, Madrid Co. paid $100,000 to employees for 9,160 hours worked. 2,450 units were produced during February. What is the flexible budget amount for direct labor?
Multiple Choice
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$31,850
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$100,000
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$119,080
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$127,400
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