The zonal office carries out routine office work in a sales order processing department, and all tasks in the department have been given standard times. There are 55 clerks in the department who work on average 140.5 hours per month each. The efficiency ratio of the department is 108%. Required: Calculate the budgeted output in the department
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 zonal office carries out routine office work in a sales order processing department, and all tasks in the department have been given standard times. There are 55 clerks in the department who work on average 140.5 hours per month each. The efficiency ratio of the department is 108%.
Required:
Calculate the budgeted output in the department.
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