9 The LFH Corporation makes and sells a single product, Product T. Each unit of

Question

9 The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be: Skipped Multiple Choice $294,000 $441,000 $444,150 $437850

Explanation / Answer

Budgeted direct labour cost = Budgeted production units in june*Labour hour per unit*rate per hour

= 28000*1.5*10.50

Budgeted direct labour cost = 441000

so answer is b) $441,000

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