The direct labor budget shows the direct labor-hours required to satisfy the production budget. True or False In the manufacturing overhead budget, the non-cash charges (such as depreciation) are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead. True or False The manufacturing overhead budget lists all costs of production other than direct materials and direct labor. True or False the selling and administrative expense budget lists all costs of production other than direct materials and direct labor. True or False The budgeted variable selling, and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. True or False Waste on the production line will result in an unfavorable materials price variance. True or False Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances. True or False In general, the production manager is responsible for the materials price variance. True or False A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service. True or False The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period. True or False If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected. True or false
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.
The direct labor budget shows the direct labor-hours required to satisfy the production budget. True or False
In the manufacturing
The manufacturing overhead budget lists all costs of production other than direct materials and direct labor. True or False
the selling and administrative expense budget lists all costs of production other than direct materials and direct labor. True or False
The budgeted variable selling, and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. True or False
Waste on the production line will result in an unfavorable materials price variance. True or False
Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances. True or False
In general, the production manager is responsible for the materials price variance. True or False
A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service. True or False
The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period. True or False
If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected. True or false
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