Fritz, Murphy & Dollar, LLC is preparing its direct labor budget for June. Projections for the month are that 36,000 units are to be produced and 35,500 units are expected to be sold. Direct labor time is three hours per unit. If the labor cost per hour is $18, what is the total budgeted direct labor cost for June?
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.
Fritz, Murphy & Dollar, LLC is preparing its direct labor budget for June. Projections for the month are that 36,000 units are to be produced and 35,500 units are expected to be sold. Direct labor time is three hours per unit. If the labor cost per hour is $18, what is the total budgeted direct labor cost for June?
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