ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Manufacturing Overhead Budget provides a schedule of all costs of production other than direct materials and labor costs.
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The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead.
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The Manufacturing Overhead Budget shows the expected cash disbursements for manufacturing overhead.
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The Manufacturing Overhead Budget is prepared after the Sales Budget
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Detailed explanation-1: -Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget? The manufacturing overhead budget shows only the variable portion of manufacturing overhead.
Detailed explanation-2: -Expert Answer Therefore, the sales manager’s compensation is not considered a manufacturing overhead.
Detailed explanation-3: -Which of the following statements is false with respect to the manufacturing overhead budget? It excludes depreciation because it is not a cash flow.
Detailed explanation-4: -Which of the following statements is correct in describing manufacturing overhead? Manufacturing overhead consists of all manufacturing cost except for prime cost. Prime cost consists of: direct materials and direct labor.