 Hello in this lecture we're going to continue on our master budget and we will be working on the direct labor budget at this time so remember what we have done so far we have to start off in this way we did the sales budget in order to know what we're going to sell we have to we sell we have to do that first and then we did the production budget in terms in terms of how much units we're going to need to produce based on the sales budget then we did the raw materials budget we need to do these two budgets the production budget before we do the raw materials budget and now we're going to work on the direct labor budget notice of course we don't really need to do the raw materials before the labor budget but we do however need to do the sales budget and the production budget in order to determine how much labor it's going to we will need in order to fulfill our obligations in the budgeting process the direct labor is a little bit easier a little bit more straightforward to my mind so this is how we're going to take a look at that