Operating Budget

Direct Labor Budget
The enjoin chore cypher helps a connection spectacle how many labor hours and how much money argon indispensable for product. With this budget, a company can see what is needed to provide the right amount of labor to produce a given product. The trail labor budget depends on the production volume expect multiplied by the amount of labor pay that depart be needed for each unit price. In this case Leitner Manufacturing, Inc will incur a direct labor address of $2490,000 for the second quarter. During the first quarter the company expected units to be produced are 83,000 units, which hire two direct labor hours per unit. A total of 166,000 hours will be require at a rate of $15 an hour which will equal total of $ 2,490,000 of labor cost.
Overhead Budget
The manufacturing overhead budget shows the expected manufacturing overhead costs for the budget accomplishment. The budget distinguishes between inconsistent and fixed overhead costs. Variable overhead is work out by the budgeted direct labor hours multiplied by the variable overhead rate. Fixed overhead will be cypher by adding the expenses that are not dependent on the level of goods produced. Leitner Manufacturing will incur a total of $852,400 of overhead cost. This cost consists of $ 647,000 variable overhead and $205,000 of fixed cost.




Selling and Administrative set down Budget
A selling and administrative expense budget represents a few different activities within business. This budget typically helps commission reduce costs and control non-revenue producing aspects of their company. It also creates a historic record for financial trending. The primary use for the selling and administrative expense budget is to plan cost for a period of time. Planning these costs help companies ensure they have large funds to pay for operations. The budgeted selling and administrative expense account is calculated as a measure in expected units to be sold. In this case Leitner Manufacturing will have an...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper