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Bags Ltd makes and sells upmarket carry bags for laptop computers. Iakopo is responsible for preparing Bags Ltd s master budget and has assembled the
Bags Ltd makes and sells upmarket carry bags for laptop computers. Iakopo is
responsible for preparing Bags Ltds master budget and has assembled the following data
for next year.
The direct labour rate includes wages, all employeerelated benefits and the employers
share of payroll tax. Laboursaving machinery will be fully operational by March. Also,
as of March, the entitys enterprise agreement calls for an increase in direct labour
wages that is included in the direct labour rate.
Bags Ltd expects to have bags in inventory at the beginning of the year, and has
a policy of carrying per cent of the following months projected sales in inventory
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