LBC Corporation Makes and Sells a Product Called Product WZ

question 116

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:

Inventory Value

The cost or market value of all the goods and materials held by a company for the purpose of resale.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess relative currency value.

Canadian Dollars

The official currency of Canada, represented by the symbol CAD or C$ and denoted by the ISO code "CAD".

Hockey Skates

Specialized footwear designed for playing hockey, featuring a blade attached to the bottom for gliding on ice.