Smith Corporation Makes and Sells a Single Product Called a Pod

Multiple Choice

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4 direct labor-hours at $9.60 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.The budgeted direct labor cost per Pod is closest to:

A) $13.44
B) $9.60
C) $7.38
D) $11.00