The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The budgeted direct labor cost per unit of Product T is closest to:
A)$9.80
B)$11.83
C)$7.00
D)$13.72

Question

Quizplus · Accepted Answer

The budgeted direct labor cost per unit of Product T is calculated by multiplying the direct labor-hours required per unit (1.4 hours) by the rate per direct labor-hour ($9.80), which equals $13.72.

The LFG Corporation Makes and Sells a Single Product, Product