LFM Corporation Makes and Sells a Product Called Product WZ

question 73

Multiple Choice

LFM 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 $16.00 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)$4.57
• B)$19.50
• C)$16.00
• D)$56.00

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Definitions:

Drug Testing

The practice of testing employees for the use of illegal substances or abuse of prescription medications, typically as a condition of employment or safety protocol.

Bona Fide Occupational Requirement

A legitimate, non-discriminatory requirement for a specific job, used to determine an individual's suitability based on task-related criteria.

Illegal

Activities or actions that are forbidden by law and subject to penalties.

Discretion of the Employer

The freedom or authority granted to employers to make decisions regarding the management and operation of their business.