The direct materials budget can not be prepared until it is determined how much of product is going to be produced.
The manufacturing overhead budget can not be prepared until it is determined how much of product is going to be produced.
The budgeting process starts with the sales budget. It is impossible to prepare a production or master budget without the sales budget being prepared.
The direct labor budget can not be prepared until it is determined how much of product is going to be produced.
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