A company's production budget shows the following units to produce. Each unit requires 3 hours of direct labor. The direct labor rate is budgeted at $43 per hour in all months. Prepare a direct labor budget for each month of October, November, and December. Units to produce Units to produce Direct labor hours needed Cost of direct labor October 638 November 698 December 558 Direct Labor Budget October 638 November 698 December 558 units
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.
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