6. Labour Budget
It represents the forecast of labour requirements to meet the demands of the company during the budget It most be linked with production budget production cost budget Multification of units of finished goods to be produced by the labour cost per unit gives the direct labour cost.
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Purposes
To estimate the labour cost of production To determine the direct labour required in terms of labour hours & hence the number & grade of workers required to meet the production requirements To provide the personnel department with personnel requirements so that it may plan requirement activities To provide data for managerial control of labour cost.
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