Total budgeted fixed overhead cost for the Actual fixed overhead cost for the year Budgeted standard direct labour-hours
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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![Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours
allowed for actual output of the period. During the recent year, the following data were collected:
Total budgeted fixed overhead cost for the year
Actual fixed overhead cost for the year
Budgeted standard direct labour-hours
Actual direct labour-hours
Standard direct labour-hours allowed for the actual output
Predetermined overhead rate
Required.
1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
$117,130
$113,830
per DLH
Fixed overhead budget variance
Fixed overhead volume variance
22,100
23,500
20,600
2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable,
"U" for unfavourable, and "None" for no effect (i.e., zero variance).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b4890dc-b7f0-4fe5-a09e-162f7feaee87%2Fe4747187-2c1f-4d49-ae5b-9a8e2173ea6f%2Ff497lud_processed.png&w=3840&q=75)
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