The LFH Corporation Makes and Sells a Single Product, Product

Multiple Choice

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 budgeted direct labor cost per unit of Product T is closest to:

A) $9.10
B) $10.50
C) $7.00
D) $15.75