Pabon Corporation makes one product. Budgeted unit sales for August and September are 11,100 and 12,600 units, respectively. The ending finished goods inventory equals 40% of the following month's sales. The direct labor wage rate is $19.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours. The estimated direct labor cost for August is closest to: $389,000 O $555,750 O $29,250 O $222,300
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.
![Pabon Corporation makes one product. Budgeted unit sales for August and
September are 11,100 and 12,600 units, respectively. The ending finished
goods inventory equals 40% of the following month's sales. The direct labor
wage rate is $19.00 per hour. Each unit of finished goods requires 2.5 direct
labor-hours. The estimated direct labor cost for August is closest to:
O $389,000
O $555,750
O $29,250
O $222,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F495ef8f1-2cba-4999-b711-541c5a5b4322%2F21bf3a99-54fc-4f9c-9d17-df8698b9ab90%2Foy6acpm_processed.jpeg&w=3840&q=75)
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