Mahalo Company manufactures and sells men's Hawaiian style shirts. Each shirt (unit) requires 2.2 yards of cloth. Selected data from Mahalo's master budget for the second quarter are shown below: Budgeted sales (in units) Budgeted production (in units) April 8,800 9,800 May 10,800 12,300 June 12,800 14,800 Each unit requires 0.8 hours of direct labor, and the average hourly cost of Mahalo's direct labor is $18. What is the cost of Mahalo Company's direct labor in 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.
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