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22. The direct labor budget is based on: A. the desired ending inventory of finished goods. B. the beginning inventory of fin
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Answer #1

The direct labor budget is based on the required production for the period.

Correct option is C.

Direct labor hours needed during a particular period depend on the production during that period.

Total direct labor hours needed = Output units x Direct labor hour per unit

After calculating Direct labor hours needed, Direct labor cost can be calculated as under:

Total direct labor cost = Total direct labor hours needed x Direct labor rate

Thus the foundation of direct labor budget is the production.

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