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.
-What would be the budgeted direct labour cost per unit of Product T?
A) $7.00.
B) $9.10.
C) $10.40.
D) $11.83.

Question

Quizplus · Accepted Answer

The budgeted direct labour cost per unit is calculated by multiplying the hours required per unit (1.3 hours) by the labour rate per hour ($9.10), which equals $11.83.

The LFM Company Makes and Sells a Single Product: Product