The LFM Company Makes and Sells a Single Product, Product

question 8

Multiple Choice

The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3 hours of direct labor at a rate of $9.10 per direct labor-hour. LFM Company needs to prepare a Direct Labor Budget for the second quarter of next year.
-The budgeted direct labor cost per unit of Product T would be:

• A) $9.10
• B) $11.83
• C) $7.00
• D) $10.40