Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $97,500, and actual units produced were 950. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable ovexhead Tised overhead $ 32,500 42,500 Total overhead $95,000 a. Compute controllable variance. b. Compute volume variance.
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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