To prepare the direct materials labor costs budget, which of the following budget must be prepared first?

Question

Quizplus · Accepted Answer

The production budget must be prepared first as it provides the estimated quantity of finished goods that need to be produced during a specific period. The direct material purchase budget and the direct material usage budget depend on the production budget, as they are based on the estimated direct material requirements for the production of finished goods. Therefore, the direct materials labor costs budget cannot be prepared without first preparing the production budget. Budgeted manufacturing overhead is not directly related to the preparation of the direct materials labor costs budget.

To Prepare the Direct Materials Labor Costs Budget, Which of the Following