Exercise 20-34 (Algo) Direct labor budget for a service company LO A1 Render CPA is preparing direct labor budgets for the current year. The partners budget billable hours for the year as follows. Data entry Auditing Tax Consulting 1,060 hours 2,420 hours 2,160 hours 360 hours The company budgets $11 per hour to data-entry clerks, $37 per hour to audit personnel, $53 per hour to tax personnel, and $53 per hour to consulting personnel. Prepare a direct labor budget for this service company for the year. Data-entry Auditing RENDER CPA Direct Labor Budget For The Year Ending December 31 Tax Consulting Cost of direct labor Direct Labor Hours Direct Labor Cost per hour Direct Labor Cost

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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.