A. The raw materials purchases budget does not provide information for the direct labor budget preparation. B. Once the sales budget has been developed, it provides information with which to prepare the production budget. The production budget determines how muchof the product will be produced. Thus, it provides information to prepare the direct labor, direct materials and manufacturing overhead budgets.
C. The cash budget is the last budget in the master budget, and the direct labor budget must be prepared before the cash budget can be prepared.
D. Sales forecast will give information to determine the level of production. However, it does not provide direct information to prepare the direct labor budget.
