MNO Company has projected to sell 500,000 units of its primary product in 2022. It estimates the selling price to be $50 per unit. Required: ⦁ If MNO Company Estimates the unit cost to produce the 500,000 units consists of Material cost $5; Direct labor cost $7; and manufacturing overhead $8. What is the total production cost for the its annual projected sales unit? Show Computation in a production budget format.
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.
⦁ MNO Company has projected to sell 500,000 units of its primary product in 2022. It estimates the selling price to be $50 per unit.
Required:
⦁ If MNO Company Estimates the unit cost to produce the 500,000 units consists of Material cost $5; Direct labor cost $7; and manufacturing
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