Sandhill Co.developed its annual manufacturing overhead budget for its master budget for 2022 as follows: 121,000 Direct Labor Hours Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Fixed overhead costs Depreciation Supervision Property taxes Total costs Total variable Total fixed $605,000 121,000 60,500 786,500 249,000 129,000 105,000 483,000 $1,269.500 The relevant range for monthly activity is expected to be between 9,000 and 12.000 direct labor hours. Prepare a flexible budget for a monthly activity level of 9,000 and 10,000 direct labor hours. (Ust variable costs before fixed costs)
Sandhill Co.developed its annual manufacturing overhead budget for its master budget for 2022 as follows: 121,000 Direct Labor Hours Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Fixed overhead costs Depreciation Supervision Property taxes Total costs Total variable Total fixed $605,000 121,000 60,500 786,500 249,000 129,000 105,000 483,000 $1,269.500 The relevant range for monthly activity is expected to be between 9,000 and 12.000 direct labor hours. Prepare a flexible budget for a monthly activity level of 9,000 and 10,000 direct labor hours. (Ust variable costs before fixed costs)
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.
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Transcribed Image Text:Sandhill Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows:
121,000 Direct
Labor Hours
Expected annual operating capacity
Variable overhead costs
Indirect labor
Indirect materials
Factory supplies
Fixed overhead costs
Depreciation
Supervision
Property taxes
Total costs
Total variable
Total fixed
$605,000
121,000
60,500
786,500
249,000
129,000
105,000
483,000
$1,269.500
The relevant range for monthly activity is expected to be between 9,000 and 12,000 direct labor hours.
Prepare a flexible budget for a monthly activity level of 9,000 and 10,000 direct labor hours. (List variable costs before fixed costs)
Transcribed Image Text:Activity level
Direct labor hours
Variable Costs
Indirect Labor
Indirect Materials
Factory Supplies
Total Variable Costs
Fixed Costs
Depreciation
Supervision
Property Taxes
Total Fixed Costs
Indirect Labor
Indirect Materials V
Factory Supplies
Total Variable Costs
Fixed Costs
Depreciation
Total Costs
Supervision
Property Taxes
Total Fixed Costs
SANDHILL CO.
Monthly Flexible Manufacturing Overhead Budget
V
V
$
9,000
0000 0000
10,000
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