The LFG Corporation Makes and Sells a Single Product, Product

Multiple Choice

The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG 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) $9.80
B) $11.83
C) $7.00
D) $13.72