Exercise 4 (Direct Labor Budget) The Production Department of the Laguna Plant óf JC Corporation has. submitted the following forecast of units to be produced at the plant for each quarter of the upcoming fiscal year. The plant produces high-end outdoor barbeque grills. 1s quarter 5,000 2nd quarter 4,400 3rd quarter 4,500 4th quarter 4,900 Units to be produced Each unit requires 0.40 direct labor-hours and direct labor-hour workers paid P11 per hour. Required: 1. Construct the company's direct labor budget for the upcoming fiscal year, · assuming that the direct labor work force is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. e. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor work force is not adjusted each quarter.
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.
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