LBC 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 $14.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

LBC 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 $14.50 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:

Multiple Choice

• $18.00
• $4.14
• $14.50
• $50.75

  Correct

Explanation

Budgeted direct labor cost = 3.5 direct labor-hours per unit × $14.50 per direct labor-hour =$50.75 per unit