Which Budget is input for the Direct Labor Budget With expla

Which Budget is input for the Direct Labor Budget? With explanation

Solution

Production Budget>

Explanation:

Direct Labour budget is made for computing the budgeted labour hours required for the production and budgeted labour cost need to be incurred based on budgeted labour hours and labour rate per hour.

However, for computing the hours required for production, the budgeted production planned for each month or quarter (as the case may be) is required which can only be made available from Production budget.