LBC Corporation Makes and Sells a Product Called Product WZ

question 133

Multiple Choice

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:

• A) $50.75
• B) $14.50
• C) $4.14
• D) $18.00

---

Definitions:

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization.

Duplication

The act of making an exact copy of something, often used in the context of data replication or the reproduction of research results for validation.

Underutilization

The situation where resources, such as personnel, equipment, or capacity, are not being used to their full potential.

Departmentalization

Departmentalization is an organizational strategy of dividing a company or institution into specialized sectors or departments, each focused on a distinct function or area of operation.