Assume a company’s budgeted unit sales and its required production in units for April are 97,000 units and 95,000 units, respectively. The direct labor-hours required per unit is 1.75 hours. The company’s total budgeted direct labor cost for April is $2,327,500. What is the budgeted direct labor wage rate per hour for April? Multiple Choice $13.71 $19.98 $14.00 $19.40
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.
Assume a company’s budgeted unit sales and its required production in units for April are 97,000 units and 95,000 units, respectively. The direct labor-hours required per unit is 1.75 hours. The company’s total budgeted direct labor cost for April is $2,327,500. What is the budgeted direct labor wage rate per hour for April?
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$13.71
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$19.98
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$14.00
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$19.40
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