Ribo Company’s budgeted total variable overhead is at P180,000 for the current period. In addition, the company’s budgeted costs for factory rent is at P200,000, depreciation on office equipment- P12,000, office rent- P28,000 and depreciation of factory equipment-P20,000. All these costs were based upon estimated machine hours of 80,000. At the end of the period, The Factory Overhead Control account had a balance of P375,000. Actual machine hours were 70,000. How much is the factory overhead variance for the period?
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.
Ribo Company’s budgeted total variable
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