Roberts Company has the following manufacturing overhead budget for the current month: Budgeted units to be produced VOH cost per unit Budgeted VOH* Budgeted FOH** $23,000 $30 690,000 4,000 15,000 19,000 Budgeted manufacturing overhead costs $709,000 *VOH - Variable Manufacturing Overhead Depreciation Rent Total budgeted FOH **FOH - Fixed Manufacturing Overhead What would be the budgeted manufacturing overhead costs for the month if Roberts Company expects to increase the budgeted production of units to 28,000 and the variable overhead cost per unit is expected to decrease to $25 per unit? OA. $709,000 O B. $719,000 O C. $700,000 OD. $681,000 1:34 PM
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.
![Roberts Company has the following manufacturing overhead budget for the current month:
Budgeted units to be produced
VOH* cost per unit
Budgeted VOH*
Budgeted FOH**
$23,000
$30
690,000
4,000
15,000
Budgeted manufacturing overhead costs
19,000
$709,000
*VOH - Variable Manufacturing Overhead
Depreciation
Rent
Total budgeted FOH
**FOH - Fixed Manufacturing Overhead
What would be the budgeted manufacturing overhead costs for the month if Roberts Company expects to increase the budgeted production of units to 28,000 and the variable
overhead cost per unit is expected to decrease to $25 per unit?
OA. $709,000
O B. $719,000
OC. $700,000
OD. $681,000
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