Question

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.3 hours of direct labor at the rate of $22.00 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:

Answer 1

$94.60

Step-by-step explanation:

The computation of the budgeted direct labor cost per unit is shown below:

Budgeted direct labor cost per unit = Required direct labor hours × rate per direct labor hour

= 4.3 hours × $22

= $94.60

By multiplying the required direct labor hours with the rate per direct labor hour we can get the budgeted direct labor cost per unit