The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted sales revenue Actual manufacturing overhead Budgeted machine hours (based on practical capacity) Budgeted direct-labor hours (based on practical capacity) Budgeted direct-labor rate Budgeted manufacturing overhead Actual machine hours Actual direct-labor hours Actual direct-labor rate $ 205,000 338,000 10,000 20,000 $ 14 $364,000 11,000 18,000 $15
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.
Compute the firm’s predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars
![The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
Budgeted sales revenue
Actual manufacturing overhead
Budgeted machine hours (based on practical capacity)
Budgeted direct-labor hours (based on practical capacity)
Budgeted direct-labor rate
Budgeted manufacturing overhead
Actual machine hours
Actual direct-labor hours
Actual direct-labor rate
$ 205,000
338,000
10,000
20,000
$ 14
$364,000
11,000
18,000
$15](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2F0efa11eb-dc15-46a2-9f88-7bba26f5b81c%2Fs1pyf5_processed.png&w=3840&q=75)
![Cost Drivers
(a) Machine hours
(b) Direct-labor hours
(c) Direct-labor dollars
Overhead Rate
per machine hour
per direct-labor hour
per direct-labor dollar](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2F0efa11eb-dc15-46a2-9f88-7bba26f5b81c%2Fhes7vru_processed.png&w=3840&q=75)
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