Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,500 pairs of shoes that required 12,250 units of material purchased at $8.20 per unit and 9,450 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $28,350. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance. Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September. Manufacturing Costs Standard Price Standard Quantity Standard Cost Per Unit Direct materials $8.40 per unit 3.60 units per pair $30.24 Direct labor $8.50 per hour 2.80 hours per pair 23.80 Factory overhead $2.70 per hour 2.80 hours per pair 7.56 Total standard cost per pair $61.60 Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 Manufacturing Costs Actual Costs Standard Cost at Actual Volume Cost Variance - (Favorable) Unfavorable Direct materials $fill in the blank fe86880a501afd6_1 $fill in the blank fe86880a501afd6_2 $fill in the blank fe86880a501afd6_3 Direct labor fill in the blank fe86880a501afd6_4 fill in the blank fe86880a501afd6_5 fill in the blank fe86880a501afd6_6 Factory overhead fill in the blank fe86880a501afd6_7 fill in the blank fe86880a501afd6_8 fill in the blank fe86880a501afd6_9 Total manufacturing costs $fill in the blank fe86880a501afd6_10 $fill in the blank fe86880a501afd6_11 $fill in the blank fe86880a501afd6_12
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.
Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,500 pairs of shoes that required 12,250 units of material purchased at $8.20 per unit and 9,450 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $28,350. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.
Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September.
Standard Price |
Standard Quantity |
Cost Per Unit |
|
| Direct materials | $8.40 per unit | 3.60 units per pair | $30.24 |
| Direct labor | $8.50 per hour | 2.80 hours per pair | 23.80 |
| Factory overhead | $2.70 per hour | 2.80 hours per pair | 7.56 |
| Total standard cost per pair | $61.60 |
| Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 |
|||
Manufacturing Costs |
Actual Costs |
Standard Cost at Actual Volume |
Cost Variance - (Favorable) Unfavorable |
| Direct materials | $fill in the blank fe86880a501afd6_1 | $fill in the blank fe86880a501afd6_2 | $fill in the blank fe86880a501afd6_3 |
| Direct labor | fill in the blank fe86880a501afd6_4 | fill in the blank fe86880a501afd6_5 | fill in the blank fe86880a501afd6_6 |
| Factory overhead | fill in the blank fe86880a501afd6_7 | fill in the blank fe86880a501afd6_8 | fill in the blank fe86880a501afd6_9 |
| Total manufacturing costs | $fill in the blank fe86880a501afd6_10 | $fill in the blank fe86880a501afd6_11 | $fill in the blank fe86880a501afd6_12 |
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