Becker Bikes manufactures tricycles. The company expects to sell 490 units in May and 620 units in June. Beginning and ending finished goods for May are expected to be 165 and 130 units, respectively. June's ending finished goods are expected to be 140 units. Each unit requires 1.5 direct labor hours and Becker's hourly labor rate is $96 per hour. Compute Becker's direct labor budget for May and June. Note: Do not round intermediate calculations. Budgeted direct labor cost May June
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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