"Capital expenditure budget : It states the timing & amounts of fixed asset purchased by an organization which is part of the annual budget used by a firm, and is then used to organize activities for the upcoming year. It involves a wide array of expenditures, including the construction of new facilities, upgrades to existing assets and equipment required by new hires.
Capital Expenditure calculating formulae:
Capital Expenditure = Property, Plant & Equipment (current period) – Property, Plant &Equipment (prior period) +
Depreciation (current period)
Direct Labor budget : This budget is used to calculate the number of labor hours that will be needed to produce the units itemized in the production budget and is useful for anticipating the number of employees who will be needed to staff the manufacturing area throughout the budget period.
To calculate or make it, the number of units to be produced (from the production budget) is multiplied by the direct labor time needed to make each unit and then that result is then multiplied by the average direct labor cost per hour. Calculating Cash Budget :
i) First, the beginning cash balance is determined i.e. the amount of cash that will be available at the beginning of the period like fiscal year or the quarter month.
ii) Then the receipts are added.
iii) Then disbursement is deducted.
iv) Cash excess or deficiency is then calculated..
v) Financing needed is determined.
vi) Finally, the ending cash balance is established."
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