List and describe the five steps of good budgeting.
What will be an ideal response?
First, you want to put together your first estimated budget to get a first glimpse of how you think you spend your money. The second step is to track your expenses for a month to see where the money actually goes. Just keep a record of everything you spend for one month. The third step is to compare your estimated budget with your actual budget. Pay attention to each expense in each category to see how close you were to reality. The fourth step is to create an estimated 12-month budget. You begin to budget 12 months in advance and adjust for the differences between what you thought would happen and what actually happened as you go along. The last step is to track and adjust each month. Compare what actually happened last month with what you thought would happen.
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a. minimize risk b. justice c. informed consent d. proportionality
The normal capacity of Noel Company is 4,00 . units per month. At this volume, budgeted fixed and variable factory overhead are $16,00 . and $20,000 . respectively. In May, actual production was 4,200 units and actual overhead incurred was $37,900. What is the variance between budgeted factory overhead per the flexible budget and actual overhead incurred?
a. $1,900 U b. $1,00 . U c. $900 U d. $100 U