The Gerald Corporation Makes and Sells a Single Product Called

question 154

Multiple Choice

The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires 1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. The company is preparing a Direct Labor Budget for the first quarter of the year. The budgeted direct labor cost per Clop is closest to:

• A)$7.45
• B)$8.20
• C)$9.02
• D)$9.76

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Definitions:

Mandible

The lower jaw or jawbone, significant in the structure of the face and in the process of chewing.

Trapezius Muscle

A large superficial muscle that extends from the occipital bone to the lower thoracic vertebrae and to the scapular spine, involved in moving the shoulder blade and supporting arm movements.

Intercostal Space

An anatomical term referring to the space located between two ribs, through which nerves and blood vessels run.

Midclavicular Line

An imaginary vertical line passing through the midpoint of the clavicle in each half of the human body.