The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG Corporation needs to prepare a Direct Labor Budget for the second quarter of next year.
-The budgeted direct labor cost per unit of Product T is closest to:

Question

Quizplus · Accepted Answer

The budgeted direct labor cost per unit of Product T can be calculated by dividing the total budgeted direct labor cost by the total number of units produced.

Total budgeted direct labor cost = $150,000

Total number of units produced = 10,000 units

Budgeted direct labor cost per unit = Total budgeted direct labor cost / Total number of units produced

= $150,000 / 10,000 units

= $15 per unit

Therefore, the closest option is D) $13.72.

The LFG Corporation Makes and Sells a Single Product, Product