Megan Company has two departments, X and Y. Overhead is applied based on direct-labor hours in Department X and machine hours in Department Y. The following additionait information is available: BUDGETED AMOUNTS Department X Department Y Direct-Labor Hours 18,000 16,500 Machine Hours 51,000 40,000 Factory Overhead $225,000 $180,000 Actual Data for Job #10 Department X $10,000 $11,000 5,000 1,100 Department Y $16,000 $14,000 3,000 1,400 Direct materials Direct-labor cost Machine hours Direct-labor 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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