The LFH Corporation Makes and Sells a Single Product, Product

question 3

Multiple Choice

The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year.The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:

• A) $294,000
• B) $441,000
• C) $444,150
• D) $437,850

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Definitions:

Customer Satisfaction

A measure of how products or services meet or exceed customer expectations, often considered crucial for business success.

Work Processes

The structured set of activities and tasks conducted by individuals or groups within an organization to produce a desired output or outcome.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion.

Computer-integrated Manufacturing

A method of manufacturing where the entire production process is controlled and monitored by computers, enhancing efficiency and flexibility.