Pinnacle Corp. budgeted $253,730 of overhead cost for the current year. Actual overhead costs for the year were $222,790. Pinnacle's plantwide allocation base, machine hours, was budgeted at 45,830 hours. Actual machine hours were 49,640. A total of 102,910 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$5.54 per machine hour b.$4.86 per machine hour c.$2.16 per machine hour d.$2.47 per machine hour
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.
Pinnacle Corp. budgeted $253,730 of
Step by step
Solved in 2 steps