The LFG Corporation Makes and Sells a Single Product, Product

question 159

Multiple Choice

The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The budgeted direct labor cost per unit of Product T is closest to:

• A)$9.80
• B)$11.83
• C)$7.00
• D)$13.72

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Financial Accounting Standards Board

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