TJH bases its manufacturing overhead budget on machine hours. Estimated machine hours are 10,000 for the quarter. NUBD estimates its variable manufacturing overhead costs at P7 per machine hour. NUBD projects its fixed manufacturing overhead costs for the quarter to be P16,000 including P5,000 depreciation. By how much will manufacturing overhead costs affect the cash budget for the quarter?
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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