Frankfort Car Tunes produces car radios. Actual fixed manufacturing overhead is the same as the budgeted amount, $330,000. Production in September increased by 10% over the previous month's production. August's production was 5,000 radios. The production level is the same as the budgeted denominator level. At the end of September, 1,000 radios remained in stock. In August, all of the radios were sold by the end of the month and there was no remaining work in process inventory. What is the amount of fixed manufacturing costs that will be included in the September cost of goods sold amount if absorption costing is used? (a) $264.000.
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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