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# Production budget formula

In short, video **production** takes a lot more than an hour. We charge by using a day rate, $1400/day, or sometimes a half-day rate of $900. Basically, we figure out how much time will be spent on a project (how many days), then we apply the day rate to come up with our total cost.

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An example of a **production** **budget** computation.Other videos in this series:Part 2 - Purchases BudgetPart 3 - **Production** and Purchases Comprehensive ExampleFor.

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There are three main components necessary for creating a cash budget. They are: Time period Desired cash position Estimated sales and expenses Time Period The first decision to make when preparing a cash budget is to decide the period of time for which your budget will apply.

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The general **formula** for this calculation, where "x" is the percentage achieved is: x = actual / goal x = 112000 / 100000 x = 1.12. Converting this to an Excel **formula** with cell references, the **formula** in E5 becomes: = D5 / C5 = 112000 / 100000 = 1.12 = 112 %. As the **formula** is copied down, the **formula** returns a decimal number for each city in.

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Estimate At Completion (EAC) vs **Budget** At Completion (BAC) In EVM, original project **budget** is expressed as BAC whereas **budget** forecast is expressed as EAC. BAC is approved **budget** at the start of a project and remains fixed. On the other hand, EAC can be estimated on each control date and changes as the project progresses.

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Multiplying the monthly quota by the labor cost per unit shows the minimum direct labor **budget** to keep each month. Monthly Quota x Labor Cost per Unit = Monthly Direct Labor **Budget**. For example, a manufacturer pays a total of $2400 in labor wages per hour among 160 employees, making hourly labor wages $15-. $2400 / 160 = $15.