Penny's direct material cost is $3 per unit. The direct labor rate is $17 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $1 per unit and total budgeted fixed overhead is $6,300. A sales commission of $2 is paid on each unit. If Penny expects to produce 2,000 units and sell 1,200 units, what is the total budgeted cost of goods sold ? Round your answer to the nearest dollar.
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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