Which of the following budgets are needed to calculate a budgeted unit cost?
A) Direct materials purchases budget
B) Direct labor budget
C) Overhead budget
D) Direct materials purchases budget and overhead budget
E) Direct materials purchases budget, direct labor budget, and overhead budget

Question

Quizplus · Accepted Answer

A budgeted unit cost takes into account not only the direct materials and labor costs for the product, but also the overhead costs that are allocated to the product. Therefore, all three budgets (direct materials purchases budget, direct labor budget, and overhead budget) are needed to calculate a budgeted unit cost.

Which of the Following Budgets Are Needed to Calculate a Budgeted