Question

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: Multiple Choice $19.00 $5.60 $20.10 $43.70

Answer 1

$43.70

Step-by-step explanation:

Data provided

Each Unit Require = 2.3 hours

Direct Labor Rate Per Hour = $19.00

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

Budgeted direct labor cost per unit = Each Unit Require × Direct Labor Rate Per Hour

= 2.3 hours × $19.00 rate per hour

= $43.70

Therefore for computing the budgeted direct labor cost per unit we simply multiply the each unit require with direct labor rate per hour