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:
Multiple Choice
A. $13.44
B. $9.60
C. $7.38
D. $11.00
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