Asked by Daniel Yoshuvayev on Apr 25, 2024
Verified
The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH 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:
A) $9.10
B) $10.50
C) $7.00
D) $15.75
Direct Labor Cost
The expense related to the work of employees directly involved in the production of goods or services, such as wages for assembly line workers.
Direct Labor-Hours
Direct labor-hours are the total number of hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.
- Determine budgetary financial results, covering cost of goods sold, direct labor expenditures, and acquisition needs.
- Analyze budgetary data to evaluate corporate achievements and strategize for future operations.
Verified Answer
GA
ghalia alsanie5 days ago
Final Answer :
D
Explanation :
The direct labor cost per unit is calculated by multiplying the direct labor-hours required per unit by the rate per direct labor-hour. Therefore, 1.5 hours * $10.50 per hour = $15.75.
Learning Objectives
- Determine budgetary financial results, covering cost of goods sold, direct labor expenditures, and acquisition needs.
- Analyze budgetary data to evaluate corporate achievements and strategize for future operations.
Related questions
Sarafiny Corporation Is in the Process of Preparing Its Annual ...
Smith Corporation Makes and Sells a Single Product Called a ...
Smith Corporation Makes and Sells a Single Product Called a ...
Sarafiny Corporation Is in the Process of Preparing Its Annual ...
Bonkowski Corporation Makes One Product and Has Provided the Following ...