Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Rammazzotti, Inc., had the following budgeted data: Unit sales for the year 26,000 Unit production for the year 26,000 Budgeted fixed overhead for the year: Supervision $ 800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit: Direct materials $0.15 Direct labor 0.20 Supplies 0.02 Indirect labor 0.05 Power 0.02 The following actually occurred: Actual unit sales for the year 24,000 Actual unit production for the year 28,000 Actual fixed overhead for the year: Supervision $ 850 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials $3,500 Direct labor 4,900 Supplies 530 Indirect labor 1,250 Power 470 The total budgeted costs for the year were a.$14,340. b.$11,440. c.$13,510. d.$13,460.
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Rammazzotti, Inc., had the following budgeted data: Unit sales for the year 26,000 Unit production for the year 26,000 Budgeted fixed overhead for the year: Supervision $ 800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit: Direct materials $0.15 Direct labor 0.20 Supplies 0.02 Indirect labor 0.05 Power 0.02 The following actually occurred: Actual unit sales for the year 24,000 Actual unit production for the year 28,000 Actual fixed overhead for the year: Supervision $ 850 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials $3,500 Direct labor 4,900 Supplies 530 Indirect labor 1,250 Power 470 The total budgeted costs for the year were a.$14,340. b.$11,440. c.$13,510. d.$13,460.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs.
Rammazzotti, Inc., had the following budgeted data:
The following actually occurred:
The total budgeted costs for the year were
Rammazzotti, Inc., had the following budgeted data:
| Unit sales for the year | 26,000 |
| Unit production for the year | 26,000 |
| Budgeted fixed overhead for the year: | |
| Supervision | $ 800 |
| 2,000 | |
| Rent | 100 |
| Budgeted variable costs per unit: | |
| Direct materials | $0.15 |
| Direct labor | 0.20 |
| Supplies | 0.02 |
| Indirect labor | 0.05 |
| Power | 0.02 |
The following actually occurred:
| Actual unit sales for the year | 24,000 |
| Actual unit production for the year | 28,000 |
| Actual fixed overhead for the year: | |
| Supervision | $ 850 |
| Depreciation | 2,000 |
| Rent | 100 |
| Actual variable costs: | |
| Direct materials | $3,500 |
| Direct labor | 4,900 |
| Supplies | 530 |
| Indirect labor | 1,250 |
| Power | 470 |
The total budgeted costs for the year were
a.$14,340.
b.$11,440.
c.$13,510.
d.$13,460.
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