Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-The budgeted direct labor cost per unit of Product T is closest to:

Question

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
  At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-The budgeted direct labor cost per unit of Product T is closest to:

Quizplus · Accepted Answer

Direct labor cost per unit = 1.5 direct labor-hours per unit × $10.50 per direct labor-hour = $15.75 per unit

Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases