The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted sales revenue Actual manufacturing overhead Budgeted machine hours (based on practical capacity) Budgeted direct-labor hours (based on practical capacity) Budgeted direct-labor rate Budgeted manufacturing overhead Actual machine hours Actual direct-labor hours. Actual direct-labor rato $ 205,000 338,000 10,000 20,000 $ 14 $364,000 11,000 18,000 15
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.
Calculate the overapplied or underapplied
Overhead: It represents the indirect costs incurred in production, such as utilities and rent, which are not directly tied to a specific product's cost.
Predetermined Overhead Rate: It's a calculated rate used to allocate indirect manufacturing costs to products based on estimates, aiding in cost determination and pricing.
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