Which account would be affected when budgeted overhead and budgeted direct labor hours are established?

When establishing budgeted overhead and budgeted direct labor hours, it is important to understand that this process primarily involves planning and does not directly impact any of the accounting accounts such as Work In Progress (WIP), Finished Goods, or Raw Materials.

The creation of a budget helps in forecasting expenses and resource allocation but does not record a transaction. Budget figures are estimated amounts representing future costs that will be incurred during the production process. These planned amounts serve as operational guidelines; however, at the moment of setting these budgets, there are no actual journal entries or transactions occurring that would necessitate changes to any of the accounts mentioned.

Thus, no accounts are affected at the moment budgeted figures are established. Once actual costs are incurred and transactions are recorded, the respective accounts will be impacted; until then, establishing budgeted overhead and labor does not bring about any direct accounting changes.