The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following detalls concerning budgeted direct labor-hours: Budgeted direct labor-hours 1st Quarter 11, 200 2nd Quarter 9,809 3rd Quarter 10,100 4th Quarter 10,900 The company uses direct labor-hours as Its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and Its total fixed manufacturing overhead is $80,000 per quarter. The only noncash Item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter.
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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