The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires 1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. The company is preparing a Direct Labor Budget for the first quarter of the year. The budgeted direct labor cost per Clop is closest to:
A)$7.45
B)$8.20
C)$9.02
D)$9.76

Question

Quizplus · Accepted Answer

Direct Labor Cost per Clop = Direct Labor Hours per Clop x Direct Labor Cost per Hour
Direct Labor Hours per Clop = 1.1
Direct Labor Cost per Hour = $8.20

Therefore, Direct Labor Cost per Clop = 1.1 x $8.20 = $9.02

Hence, the budgeted direct labor cost per Clop for the first quarter is $9.02, which is closest to option C).

The Gerald Corporation Makes and Sells a Single Product Called