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 2.5 hours of direct labor at the rate of $21.00 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:

$52.50

$6.00

$26.50

$21.00

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $21.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

Explanation / Answer

Direct labor hours required 2.5 hours Labor rate per hour 21 $ per hour direct labor cost per unit $52.50 (21*2.5)

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