The budget or schedule that provides necessary input data for the direct labor budget is the:
A) raw materials purchases budget.
B) production budget.
C) schedule of cash collections.
D) cash budget.

Question

Quizplus · Accepted Answer

The production budget provides information on how many units will be produced during a particular period. This information is necessary to calculate the direct labor hours needed, which is a key component of the direct labor budget. The raw materials purchases budget only provides information on the purchases of raw materials required for production and does not provide direct labor information. The schedule of cash collections and cash budget are not directly related to the direct labor budget.

The Budget or Schedule That Provides Necessary Input Data for the Direct