The total direct labor hours required in preparing a direct labor budget are calculated using the
A) sales forecast.
B) production budget.
C) direct materials budget.
D) sales budget.

Question

Quizplus · Accepted Answer

The direct labor budget is prepared based on the production budget, as it specifies the number of units that need to be produced and the amount of labor required for each unit. The sales forecast and sales budget are used to determine the expected level of sales, but do not directly relate to the labor hours needed for production. The direct materials budget is used to plan the quantity and cost of materials needed for production, but does not involve labor hours.

The Total Direct Labor Hours Required in Preparing a Direct