Answer :
Final Answer:
a) The Direct Labor Budget for Coronado Corp includes determining the Budgeted DL Cost per Hour, Budgeted Units to be Produced, Quantity of DL per Unit (Hours), Total Budgeted DL Cost, and Total Budgeted DL Hours Needed.
Explanation:
The Direct Labor Budget is a crucial component of the overall budgeting process for Coronado Corp. To prepare this budget, several key factors need to be considered. Firstly, the Budgeted DL Cost per Hour is determined based on factors such as wage rates, benefits, and other labor-related expenses. Next, the Budgeted Units to be Produced are forecasted based on sales projections, production capacity, and inventory targets.
Once the production volume is established, the Quantity of DL per Unit (Hours) is calculated by analyzing the labor requirements for each unit of output. This involves assessing the time and effort needed to produce each unit of the company's products or services. Multiplying the Budgeted Units to be Produced by the Quantity of DL per Unit yields the Total Budgeted DL Hours Needed.
Finally, the Total Budgeted DL Cost is computed by multiplying the Total Budgeted DL Hours Needed by the Budgeted DL Cost per Hour. This provides an estimate of the total direct labor expenses that Coronado Corp will incur during the budget period. By accurately forecasting and budgeting for direct labor costs, the company can effectively manage its resources and ensure smooth operations.
So correct option is a) Direct Labor Budget
