Reference: 07-10
The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3 hours of labour at a labour rate of $9.10 per hour. LFM Company needs to prepare a Direct Labour Budget for the second quarter of next year.
-The budgeted direct labour cost per unit of Product T would be:
A)$10.40.
B)$7.00.
C)$9.10.
D)$11.83.

Question

Quizplus · Accepted Answer

Labour required per unit of Product T = 1.3 hours
Labour cost per hour = $9.10
Thus, direct labour cost per unit of Product T = 1.3 x $9.10 = $11.83. Therefore, the correct option is D.

Reference: 07-10 The LFM Company Makes and Sells a Single Product, Product