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LHU Corporation: calculate direct labor cost per unit

Question

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.2 hours of direct labor at the rate of $18.00 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:

a. $5.40

b. $18.00

c. $17.20

d. $39.60

 

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