LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.4 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 25,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 470 and 50 units, respectively. Budgeted direct labor costs
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.
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.4 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 25,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 470 and 50 units, respectively. Budgeted direct labor costs
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