A. How many hours of cutting labor are budgeted for July? B. How many hours of sewing labor are budgeted for July? C. What is the total amount of budgeted direct labor hours for July?
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.
| Month | Budgeted production in units |
| June | 35,000 |
| July | 50,000 |
Borland uses two types of labor to make the backpacks: cutting labor and sewing labor. Each backpack requires 6 minutes, on average, of cutting labor. Each backpack requires 24 minutes of sewing labor.
Borland has a fixed
| A. | How many hours of cutting labor are budgeted for July? |
| B. | How many hours of sewing labor are budgeted for July? |
| C. | What is the total amount of budgeted direct labor hours for July? |
| D. | What is the budgeted total overhead for the month of July? |
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