ndirect labor 24,000 Utilities 20,000 Maintenance 12,000 Fixed Costs Supervisor’s salary $80,000 Depreciation 16,000 Property taxes 8,000 Actual variable costs for the first quarter were: Indirect materials $37,200 Indirect labor 26,400 Utilities 21,000 Maintenance 10,600 Actual fixed costs were as expected except for property taxes which were $9,000. All costs are considered controllable by the department manager except for the supervisor’s salary. Instructions Prepare a manufacturing overhead responsibility performance report for the first quarter
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.
Champion Company manufacturing
Variable Costs
Indirect materials $40,000
Indirect labor 24,000
Utilities 20,000
Maintenance 12,000
Fixed Costs
Supervisor’s salary $80,000
Property taxes 8,000
Actual variable costs for the first quarter were:
Indirect materials $37,200
Indirect labor 26,400
Utilities 21,000
Maintenance 10,600
Actual fixed costs were as expected except for property taxes which were $9,000. All costs are considered controllable by the department manager except for the supervisor’s salary.
Instructions Prepare a manufacturing overhead responsibility performance report for the first quarter
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