At the beginning of the period, the Cutting Department budgeted direct labor of $44,910 and supervisor salaries of $35,080 for 4,990 hours of production. The department actually completed 5,400 hours of production. Determine the budget for the department assuming that it uses flexible budgeting.
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.
s
Step by step
Solved in 3 steps with 3 images
