Asked by Kitty Dollas on May 01, 2024
Verified
The direct labor budget shows the direct labor-hours required to satisfy the production budget.
Direct Labor Budget
A detailed plan that shows the direct labor-hours required to fulfill the production budget.
Production Budget
An estimate of the total amount of production, in units, that a company needs to meet its sales goals and inventory policies.
- Familiarize oneself with the method by which direct materials, direct labor, and manufacturing overhead budgets are combined into the master budget.
Verified Answer
OC
OLIVIA CONTEMay 02, 2024
Final Answer :
True
Explanation :
The direct labor budget is a financial plan that outlines the amount of direct labor-hours required to produce the goods and services outlined in the production budget. It takes into account the labor rates, the number of employees needed, and any other labor-related expenses.
Learning Objectives
- Familiarize oneself with the method by which direct materials, direct labor, and manufacturing overhead budgets are combined into the master budget.
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