Zortfyon, SA produces 3,800 units of its standard product each month, and each requires 2 direct labor hours to produce, which costs them $17 per hour. They also have a deluxe product that requires 4 direct labor hours to produce, at the same hourly rate. The production budget in units for the deluxe model for the next 3 months is as follows: May: 520 June: 1,460 July: 540 What should Zortfyon's budgeted direct labor cost for July be? Select one: A. $165,920 B. $295,120 C. $147,560 D. $293,760 E. $357,680
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.
Zortfyon, SA produces 3,800 units of its standard product each month, and each requires 2 direct labor hours to produce, which costs them $17 per hour.
They also have a deluxe product that requires 4 direct labor hours to produce, at the same hourly rate. The production budget in units for the deluxe model for the next 3 months is as follows:
- May: 520
- June: 1,460
- July: 540
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