LHU Corporation makes and sells a product called Product WZ. Each unit of Produc

Question

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.0 hours of direct labor at the rate of $26.00 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:

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.0 hours of direct labor at the rate of $26.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

Explanation / Answer

The budgeted direct labor cost per unit of Product WZ would be=3.0 hours of direct labor at the rate of $26.00 per direct labor-hour=3*26.00=$78 per unit

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