Martin, Inc.is preparing a direct labor budget for the next quarter.Which of the following items will Martin not need to complete the budget?
A)Actual sales
B)Standard hourly labor rate
C)Standard direct labor hours per unit
D)Budgeted production

Question

Quizplus · Accepted Answer

The direct labor budget is focused on estimating the amount of labor required to produce the budgeted production for the next quarter. Actual sales do not impact the amount of direct labor needed for production, so it is not necessary for Martin, Inc. to have this information to prepare the budget. However, the standard hourly labor rate, standard direct labor hours per unit, and budgeted production are all key factors needed to calculate the direct labor budget.