Asked by Mercedez Miller on May 22, 2024
Verified
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.3 hours of direct labor at the rate of $19.00 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) $43.70
B) $5.60
C) $19.00
D) $20.10
Direct Labor Budget
A projection of the total costs associated with the direct labor needed for a specific period, based on projected levels of production or services.
Direct Labor-Hour
Direct labor-hour refers to the amount of labor time spent by workers directly manufacturing a product or delivering a service, used as a basis for allocating overhead costs.
Labor Rate
The amount paid per hour of labor, including wages and sometimes additional benefits, for direct and indirect labor.
- Determine the budgeted direct labor cost per unit for products.
Verified Answer
SP
sarani pavithraMay 28, 2024
Final Answer :
A
Explanation :
The direct labor cost per unit is calculated by multiplying the hours of direct labor required per unit by the rate per direct labor-hour. Thus, 2.3 hours * $19.00/hour = $43.70.
Learning Objectives
- Determine the budgeted direct labor cost per unit for products.