At the beginning of the period, the Cutting Department budgeted direct labor of $73,270 and supervisor salaries of $37,390 for 4,310 hours of production. The department actually completed 4,700 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.
At the beginning of the period, the Cutting Department budgeted direct labor of $73,270 and supervisor salaries of $37,390 for 4,310 hours of production. The department actually completed 4,700 hours of production.
Determine the budget for the department assuming that it uses flexible budgeting.
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