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Fill in the blank: When calculating the Direct Materials budget, your starting line should be taken from the _______ (A. Sales Budget, B. Production Budget,

Fill in the blank:

When calculating the Direct Materials budget, your starting line should be taken from the _______ (A. Sales Budget, B. Production Budget, C. Labor budget). Before moving forward with the formula, make sure to multiple the # units to be produced by the ______ (A. Cost of producing each unit, B. Quantity of Direct Materials required for each unit.). This tells me the quantity of DM needed for each period's production. I need enough direct materials for 1) the ________ (A. previous, B. Current) period's DM needs, and 2) a certain percentage of the ______ (A. Current, B Following) period's DM needs. I don't need to purchase all of these though because I already have some (A. Samples, B. Beginning inventory), which comes from the extra I bought in the previous period. By adding my DM needs and subtracting the DM I already have, I can calculate the quantity of DM I need to ______ (A. Produce, B. Purchase) and what the cost will be.

Which of the following is the correct formula for the Direct Labor Budget?

A) # units to be produced * DL cost per hour

B) # units to be produced * DL hours per unit * DL cost per hour

C) # units to be sold * DL hours per unit

D) # units to be sold * DL hours per unit * DL cost per hour

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