M8-7 (Algo) Preparing Direct Labor Budget [LO 8-3d] Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 320 units in July and 420 units in August. Each unit requires 2.50 hours of direct labor, and labor wages average $7 per hour. Compute Preston's direct labor budget for July and August. Budgeted direct labor cost July August

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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.