James Worman is preparing a direct labor budget. His sales budget shows total sales units of 15000 and sales dollars of $18750. The direct materials purchases budget shows materials to be purchased of 15000 units and budgeted purchases cost of $3750. The production budget indicates a total of 12000 units to be produced. Standard direct labor hours per unit is 0.3 and the standard average wage rate is $15. What is budgeted direct labor cost? $67500 $54000 $180000 $225000
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.
James Worman is preparing a direct labor budget. His sales budget shows total sales units of 15000 and sales dollars of $18750. The direct materials purchases budget shows materials to be purchased of 15000 units and budgeted purchases cost of $3750. The production budget indicates a total of 12000 units to be produced. Standard direct labor hours per unit is 0.3 and the standard average wage rate is $15. What is budgeted direct labor cost?
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