Static budget versus flexible budget: The I'm just started digging a production supervisor of the machine department for hanger town company agree to the following monthly static budget for the upcoming year. Hanger town machine Department monthly production budget, Wages- $570,000, utilities- 39,000, depreciation- 65,000 total 674,000 2196 the actual amount spent and the actual units produce in the first three months in the machines Department were as follow. May- amount spent $636,000 unit produced 55,000 June- 607,000 unit produced 50,000 July- 579,000 unit produced 45,000 The machine Department supervisor has been very pleased with his this performance because actual extra Dentures for May through July have been significantly Imagine lyrics less than the monthly static budget of 674,000. However the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of the work that it is produced in the machine Department. Additional budget information for the following department is follow. Wages per hour $19 an hour, utility cost per direct labor hour $1.30, direct labor hours per unit 0.50, plan monthly unit production 60,000 Repair a flexible budget for the actual units produce for May June and July in the machinery Department. Assume depreciation is a fixed cost, if required use per unit amount carryout to decimal place.
Static budget versus flexible budget: The I'm just started digging a production supervisor of the machine department for hanger town company agree to the following monthly static budget for the upcoming year. Hanger town machine Department monthly production budget, Wages- $570,000, utilities- 39,000, depreciation- 65,000 total 674,000 2196 the actual amount spent and the actual units produce in the first three months in the machines Department were as follow. May- amount spent $636,000 unit produced 55,000 June- 607,000 unit produced 50,000 July- 579,000 unit produced 45,000 The machine Department supervisor has been very pleased with his this performance because actual extra Dentures for May through July have been significantly Imagine lyrics less than the monthly static budget of 674,000. However the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of the work that it is produced in the machine Department. Additional budget information for the following department is follow. Wages per hour $19 an hour, utility cost per direct labor hour $1.30, direct labor hours per unit 0.50, plan monthly unit production 60,000 Repair a flexible budget for the actual units produce for May June and July in the machinery Department. Assume depreciation is a fixed cost, if required use per unit amount carryout to decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Static budget versus flexible budget:
The I'm just started digging a production supervisor of the machine department for hanger town company agree to the following monthly static budget for the upcoming year.
Hanger town machine Department monthly production budget,
Wages- $570,000, utilities- 39,000, depreciation - 65,000 total 674,000
2196 the actual amount spent and the actual units produce in the first three months in the machines Department were as follow.
May- amount spent $636,000 unit produced 55,000
June- 607,000 unit produced 50,000
July- 579,000 unit produced 45,000
The machine Department supervisor has been very pleased with his this performance because actual extra Dentures for May through July have been significantly Imagine lyrics less than the monthly static budget of 674,000. However the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of the work that it is produced in the machine Department. Additional budget information for the following department is follow.
Wages per hour $19 an hour, utility cost per direct labor hour $1.30, direct labor hours per unit 0.50, plan monthly unit production 60,000
Repair a flexible budget for the actual units produce for May June and July in the machinery Department. Assume depreciation is a fixed cost, if required use per unit amount carryout to decimal place.
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