Question

Companies prepare direct labor budgets to ________. avoid labor shortages determine the direct labor-hours per unit ensure timely supply of raw materials reduce inventories

Answer 1

direct labor-hours per unit

Step-by-step explanation:

A labor budget is prepared to determine the business` need for planned labor in the budget period.

It can be prepaid to show :

1. the number of labor hours required
2. the number of workers required
3. cost of hiring the required number of workers

All of this also applies for a unit production.