Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year.
-The budgeted direct labor cost per Pod would be:

Question

Quizplus · Accepted Answer

We can calculate the budgeted direct labor cost per Pod as follows:

Direct labor hours per Pod = 1.4 hours

Direct labor cost per hour = $9.60

Therefore, the direct labor cost per Pod = Direct labor hours per Pod x Direct labor cost per hour

= 1.4 x $9.60

= $13.44

Hence, the answer is A) $13.44.

Smith Company Makes and Sells a Single Product Called a Pod