is’ production data for a new deluxe product were taken from the most recent quarterly production budget: July August September Planned production in units 1,300 1,400 1,280 In addition, Nevis produces 5,600 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis’ cost per labor hour is $16. Direct labor cost for the quarter would be budgeted at:
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.
MC Qu. 9-70 Nevis' production data for a new deluxe...
Nevis’ production data for a new deluxe product were taken from the most recent quarterly production budget:
| July | August | September | |
| Planned production in units | 1,300 | 1,400 | 1,280 |
In addition, Nevis produces 5,600 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis’ cost per labor hour is $16. Direct labor cost for the quarter would be budgeted at:
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$640,605.
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$660,055.
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$669,280.
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$680,880.
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None of the answers is correct.
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