The following data is given for the Bahia Company: Budgeted production 1,073 units Actual production 917 units Materials: Standard price per pound $1.76 Standard pounds per completed unit 10 Actual pounds purchased and used in production 8,895 Actual price paid for materials $18,235 Labor: Standard hourly labor rate $14.36 per hour Standard hours allowed per completed unit 4.4 Actual labor hours worked 4,722.55 Actual total labor costs $72,019 Overhead: Actual and budgeted fixed overhead $1,199,000 Standard variable overhead rate $26.00 per standard labor hour Actual variable overhead costs $132,231 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$174,318.73 unfavorable b.$174,318.73 favorable c.$27,326.20 unfavorable d.$27,326.20 favorable
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.
The following data is given for the Bahia Company:
| Budgeted production | 1,073 units |
| Actual production | 917 units |
| Materials: | |
| Standard price per pound | $1.76 |
| Standard pounds per completed unit | 10 |
| Actual pounds purchased and used in production | 8,895 |
| Actual price paid for materials | $18,235 |
| Labor: | |
| Standard hourly labor rate | $14.36 per hour |
| Standard hours allowed per completed unit | 4.4 |
| Actual labor hours worked | 4,722.55 |
| Actual total labor costs | $72,019 |
| Actual and budgeted fixed overhead | $1,199,000 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $132,231 |
| Overhead is applied on standard labor hours. |
The variable factory overhead controllable variance is
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