Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. Budgeted number of machine-hours Supplies (@ $2.20 per machine-hour) Power (@ $3.80 per machine-hour) Salaries Equipment depreciation" Total $ 8,900 19,580 33,820 26,700 39,160 $ 119,260 In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430. The spending variance for equipment depreciation in the flexible budget performance report for the month should be:
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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