Smith Company Makes and Sells a Single Product Called a Pod

question 70

Multiple Choice

Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year.
-The budgeted direct labor cost per Pod would be:

• A) $13.44
• B) $9.60
• C) $7.38
• D) $11.00

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Definitions:

Revenue

The total income generated from normal business operations, including sales of goods and services before any expenses are subtracted.

Withdrawals

The removal of funds from a bank account or the taking out of cash or assets from a business by its owner for personal use.

Assets

Economic resources owned or controlled by a business, expected to bring future benefits.

Assets

Resources owned by a company or individual, including cash, inventory, properties, and equipment, that are expected to provide future economic benefits.