Manufacturing Costs Standard Price Standard Quantity Standard Cost Per Unit Direct materials $8.40 per unit 3.6 units per pair $30.24 Direct labor $8.50 per hour 2.8 hours per pair 23.80 Factory overhead $2.60 per hour 2.8 hours per pair 7.28 Total standard cost per pair $61.32
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.
| Standard Price | Standard Quantity | Standard Cost Per Unit | |
| Direct materials | $8.40 per unit | 3.6 units per pair | $30.24 |
| Direct labor | $8.50 per hour | 2.8 hours per pair | 23.80 |
| Factory overhead | $2.60 per hour | 2.8 hours per pair | 7.28 |
| Total standard cost per pair | $61.32 |
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Sole Purpose Shoe Company
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Budget Performance Report
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For the Month Ended September 30
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Manufacturing Costs
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Actual Costs
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Standard Cost at Actual Volume
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Cost Variance - (Favorable) Unfavorable
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Direct materials
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Direct labor
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Factory overhead
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5
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Total manufacturing costs
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