Reference: 07-10 The LFM Company Makes and Sells a Single Product, Product

question 24

Multiple Choice

Reference: 07-10
The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3 hours of labour at a labour rate of $9.10 per hour. LFM Company needs to prepare a Direct Labour Budget for the second quarter of next year.
-The budgeted direct labour cost per unit of Product T would be:

• A)$10.40.
• B)$7.00.
• C)$9.10.
• D)$11.83.

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Definitions:

Tax Revenue

Income that the government receives from taxation of individuals and businesses.

Excise Tax

A tax levied on specific goods, services, or activities, such as tobacco, alcohol, and gasoline, usually to discourage use or generate revenue.

Consumers

Individuals or entities that purchase goods and services for personal use.

Soda

A carbonated soft drink, often flavored and sweetened.