The data below relate to the month of November for Badong, Inc. which uses a standard cost system: Actual direct labor cost, P43,400 Actual hours used, 14,000 Standard hours allowed for good output, 15,000 Direct labor rate variance – debit, 1,400 Actual total overhead, 32,000 Budgeted fixed cost, 9,000 Normal activity in hours, 12,000 Total application rate per standard direct labor hour, 2.25
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.
3
The data below relate to the month of November for Badong, Inc. which uses a
Actual direct labor cost, P43,400
Actual hours used, 14,000
Standard hours allowed for good output, 15,000
Direct labor rate variance – debit, 1,400
Actual total
Budgeted fixed cost, 9,000
Normal activity in hours, 12,000
Total application rate per standard direct labor hour, 2.25
Badong uses a two-way
What was Badong’s
Group of answer choices
P500 favorable
P2,250 unfavorable
P2,250 favorable
P500 unfavorable
Step by step
Solved in 2 steps
