The XYZ Textile Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Listed below is a segment of the budget for the year 20xx. P16,000 25,000 20,000 Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary 20,000 8,000 11,000 6,000 The owner budgeted 20,000 direct labor hours per year. What would be the predetermined overhead rate (POR) per hour? Note: Write the numeric value of your answer only, e.g if the answer is $6/hr, simply write 6.
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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