LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $14.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The budgeted direct labor cost per unit of Product WZ would be:

Question

Quizplus · Accepted Answer

In order to determine the budgeted direct labor cost per unit of Product WZ, we need to calculate the total direct labor cost first.

Total direct labor cost = Direct labor hours per unit x Direct labor rate per hour

Direct labor hours per unit = 3.5 hours
Direct labor rate per hour = $14.50

Total direct labor cost = 3.5 x $14.50 = $50.75

Therefore, the budgeted direct labor cost per unit of Product WZ is $50.75.

LBC Corporation Makes and Sells a Product Called Product WZ