Shalom Company prepared the following overhead budget for next month: Activity level 7,500 machine hours Variable overhead costs Supplies Indirect labor 22,500 48,750 Fixed overhead costs Supervision 15,000 Utilities 6,000 Depreciation 10,000 The company's variable overhead costs are driven by machine-hours. In your flexible budget report, what is the total variable manufacturing costs if 7,500 units were produced at 7,000 machine hours? Amounts must be in whole numbers. Example: 88,000 or (88,000)
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.
![Shalom Company prepared the following overhead budget for next month:
Activity level
7,500
machine hours
Variable overhead costs
Supplies
Indirect labor
22,500
48,750
Fixed overhead costs
Supervision
15,000
Utilities
6,000
Depreciation
10,000
The company's variable overhead costs are driven by machine-hours.
In your flexible budget report, what is the total variable manufacturing costs if 7,500 units were
produced at 7,000 machine hours? Amounts must be in whole numbers. Example: 88,000 or
(88,000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4bb393f-8571-49ff-b9c6-dd62f7b2ad5c%2F609865b3-47fb-4d96-b1c9-9acde0d80b31%2Fnfetsp_processed.png&w=3840&q=75)
![Shalom Company plans to produce 50,000 units of Peace Products in 2023. Budgeted variable
manufacturing costs per unit are direct materials P7, direct labor P12, and overhead P18. Annual
budgeted fixed manufacturing overhead costs are P96,000 for depreciation and P45,000 for
supervision. In February, Shalom produced 6,000 units and incurred the following costs: direct
materials P38,900, direct labor P70,200, variable overhead P116,500, depreciation P8,000, and
supervision P4,000.
In your flexible budget performance report, identify the difference between budgeted and actual
costs and indicate as favorable or unfavorable.
Amounts must be in whole numbers.
Format should be: 8,000 F or 8,000 UF
direct materials](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4bb393f-8571-49ff-b9c6-dd62f7b2ad5c%2F609865b3-47fb-4d96-b1c9-9acde0d80b31%2Fzsagpe_processed.png&w=3840&q=75)
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