A company manufactures a single product, M. Budgeted production output of product M during August is200 units. Each unit of product M requires 6 labour hours for completion and PR Co anticipates 20 percent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for August?
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.
A company manufactures a single product, M. Budgeted production output of product M during August is200 units. Each unit of product M requires 6 labour hours for completion and PR Co anticipates 20 percent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for August?
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