uired: Determine the following: (please show the solution) 1. predetermined fixed Overhead rate per hour 2. predetermined variable Overhead rate per hour variance 3. applied fixed Overhead
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.
Mil Company calculates its predetermined rates using practical volume, which is 288,000 units. The
Units produced: 280,000
Direct labor hours 570,000
Direct labor rate P9
Variable overhead P2,320,000
Fixed overhead P872,000
Required: Determine the following: (please show the solution)
1. predetermined fixed Overhead rate per hour
2. predetermined variable Overhead rate per hour variance
3. applied fixed Overhead
Step by step
Solved in 3 steps with 3 images
