Budgeted direct labor hours are calculated as:
A)Budgeted production units × Direct labor requirements per unit + Ending inventory - Beginning inventory
B)Budgeted production units × Direct labor requirements per unit + Beginning inventory - Ending inventory
C)Budgeted production units × Direct labor requirements per unit
D)Budgeted sales units × Direct labor requirements per unit

Question

Quizplus · Accepted Answer

Budgeted direct labor hours are calculated as the product of budgeted production units and direct labor requirements per unit. The calculation does not involve inventory levels or sales units, as in the other answer choices.

Budgeted Direct Labor Hours Are Calculated As