direct labor budget

The direct labor budget is used to calculate the number of labor hours that will be needed to produce the unit items in the production budget. A more complex direct labor budget will calculate not only the total number of hours needed, but it also breaks down this information by labor category. The direct labor budget is useful for predicting the number of employees who will be needed to staff the manufacturing area throughout the budget period.

Direct Labor Budget

Direct Labor Budget: Learning Objectives: Define and explain direct labor budget. Prepare direct labor budget. Definition and explanation of direct labor budget Example Definition and Explanation: The direct labor budget is developed from the production budget. Direct labor requirements must be computed so that