The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000 A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of Group of answer choices $1,260,000 $1,512,000 $1,362,000 $1,482,000
The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000 A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of Group of answer choices $1,260,000 $1,512,000 $1,362,000 $1,482,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor................................................. $720,000
Machine supplies.............................................180,000
Indirect materials.............................................210,000
Depreciation on factory building..................150,000
Total manufacturing overhead.................$1,260,000
A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of
Group of answer choices
$1,260,000
$1,512,000
$1,362,000
$1,482,000
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