Question

A manufacturer develops bud­gets for the direct materials, direct labor, and overhead that will be required in the produc­tion process from which of the following? The sales budget. The budget for merchandise purchases. The selling and administrative expenses budget. The cash budget. The production budget.

Answer 1

Answer:

The production budget.

Explanation:

The production budget determines how many units are to be produced during a particular period. It also focuses on how many cost is incurred. The cost could be direct material, direct labor, and manufacturing overhead.  

These three cost is known as manufacturing overhead cost. These costs are required for processing the product so that the company could know about how much cost is an expense and how much units are to be produced till yet.