Anthony Burkhardt's Ch23-PowerPoint

Unit required operating budgets direct labor budget

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Unformatted text preview: gets: Direct Materials Budget Shows both quantity & cost of direct mat’ls to be bought Derived from DM units required for production (from Production budget) + desired change in ending DM units Budgeted cost of Direct Materials to be purchased = Budgeted required units of DM X anticipated cost per unit required Operating Budgets: Direct Labor Budget Operating Budgets: Direct Labor Budget Operating Shows both quantity of hours & cost of direct labor Shows both quantity MUST have a labor force to meet expected production Total direct labor cost formula: Chapter 23-6 Operating Budgets: Manufacturing Overhead Operating Budgets: Manufacturing Overhead Manufacturing O/H Budget: • Shows the expected manufacturing overhead costs for the budget period • Distinguishes between variable & fixed O/H costs Operating Budgets: Selling and Administrative Operating Budgets: Selling and Administrative Selling and Administrative Budget: • Projection of anticipated operating expenses • Distinguishes between variable & fixed costs Chapter 23-7 Operating Budgets Operating Budgets The Budgeted Income Statement: Is an important end-product of the operating budgets Indicates expected profitability of operations Provides a basis for evaluating company performance Is prepared from the various operating budgets (Sales Budget, Production Budget, Direct Ma...
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