Question A21 Alders Ltd use an absorption costing and have calculated an overhead absorption rate based on units of output. The following information is relevant to the last quarter: Budgeted overhead was £231,000 Actual overhead was £235,000 Actual output was 11,000 units Budgeted output was 10,500 units What was the level of under or over absorption in the last quarter? A £7,000 over absorbed B £4,000 under absorbed C £4,000 over absorbed D £7,000 under absorbed
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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