The Corporation manufactures night stands. The production budget shows that the Corporation plans to produce 1800 night stands in March and 1400 night stands in April. Each night stand requires 0.50 direct labor hours in its production. The Corporation has a direct labor rate of $19 per direct labor hour. What is the total combined direct labor cost that the Corporation should budget in March and April?
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.
The Corporation manufactures night stands. The production budget shows that the Corporation plans to produce 1800 night stands in March and 1400 night stands in April. Each night stand requires 0.50 direct labor hours in its production. The Corporation has a direct labor rate of $19 per direct labor hour. What is the total combined direct labor cost that the Corporation should budget in March and April?
Step by step
Solved in 2 steps
