XYZ Company is preparing its Manufacturing Overhead budget for the month of March. The budgeted variable manufacturing overhead is $9 per direct labor-hour. The budgeted fixed manufacturing overhead is $31,000 per month, which includes $5,000 of noncash costs (primarily depreciation of plant assets). If the budgeted direct labor-hours for March is 5,500. How much is the March's budgeted cash disbursements for manufacturing overhead? Select one: O a. $80,500 O b. $81,000 O c. None of the given answers O d. $86,500 O e. $75,500
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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