The direct labor budget begins with the required production in units from the production budget.

Direct Labor Budget

An estimate of the total direct labor cost for a future period, considering the projected demands for production or services.

Required Production

The quantity of goods a business needs to produce in a specified period to meet sales forecasts and maintain desired inventory levels.

Gain insight into the consolidation of the budgets for direct materials, direct labor, and manufacturing overhead within the master budget.

Verified Answer

Final Answer :

True

Explanation :

The direct labor budget is based on the required production in units from the production budget.

Learning Objectives

Gain insight into the consolidation of the budgets for direct materials, direct labor, and manufacturing overhead within the master budget.