Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The company’s total applied factory overhead was P315,000 last year when the company used 32,000 direct labor hours as it activity base. If the variable factory overhead rate was P8 per direct labor hour, and if 30,000 standard labor hours were allowed for the output of that year, then the total budgeted fixed factor overhead for that year must have been?
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.
30. Vin Diesel Company uses a
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