LFM 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 $16.00 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:
A)$4.57
B)$19.50
C)$16.00
D)$56.00

Question

Quizplus · Accepted Answer

The budgeted direct labor cost per unit is calculated by multiplying the direct labor hours required per unit (3.5 hours) by the rate per direct labor-hour ($16.00), which equals $56.00.

LFM Corporation Makes and Sells a Product Called Product WZ