Complete Stores Company is preparing its direct labor budget for 2022 from the following production budget based on a calendar year: Quarter Units 1 60,000 2 30,000 3 45,000 4 75,000 Each unit requires 1.5 hours of direct labor. Due to the increase in cost of living, management has decided to offer a 10% increase in wage rate from the $15.00 given in the previous year and on October 1. an increase of 20% from base. Required: Prepare a quarterly direct labor budget for 2022.
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.
Complete Stores Company is preparing its direct labor budget for 2022 from the following production budget based on a calendar year:
Quarter Units
1 60,000
2 30,000
3 45,000
4 75,000
Each unit requires 1.5 hours of direct labor. Due to the increase in cost of living, management has decided to offer a 10% increase in wage rate from the $15.00 given in the previous year and on October 1. an increase of 20% from base.
Required: Prepare a quarterly direct labor budget for 2022.
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