Final answer:
The budgeted direct-labor cost rate calculation involves the budgeted total direct-labor costs as the denominator. It helps determine the average cost per hour of labor, excluding indirect costs and is crucial for financial planning within organizations.
Step-by-step explanation:
The budgeted direct-labor cost rate includes budgeted total direct-labor costs in the denominator in the calculation. This rate is determined by dividing the total direct-labor costs by the total number of direct-labor hours. By using the budgeted amounts rather than the actual costs and hours, organizations can plan for future financial decisions. It is a critical component in budgeting and cost control within managerial accounting.
When calculating the direct-labor cost rate, one is essentially figuring out the average cost incurred for an hour of labor. It does not include indirect costs or hours in the numerator, because those are part of overhead costs. This calculation is important for setting product prices, estimating job costs, and budgeting for expenses in the production process.