The direct labor budget is based on:
A)the desired ending inventory of finished goods.
B)the beginning inventory of finished goods.
C)the required production for the period.
D)the required materials purchases for the period.

Question

Quizplus · Accepted Answer

The direct labor budget is based on the required production for the period, as it calculates the number of direct labor hours needed to produce the required amount of goods or services. The desired ending inventory of finished goods (A) and the beginning inventory of finished goods (B) are considerations for the production budget, while the required materials purchases for the period (D) are used in the direct materials budget.

The Direct Labor Budget Is Based On