A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $7 per square foot, net of purchase discount. Freight - in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $13 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $2 per hour. How much is the direct materials cost standard per square foot? OA. $7.00 OB. $22.00 OC. $15.00 OD. $7.10
A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $7 per square foot, net of purchase discount. Freight - in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $13 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $2 per hour. How much is the direct materials cost standard per square foot? OA. $7.00 OB. $22.00 OC. $15.00 OD. $7.10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from
the supplier are $7 per square foot, net of purchase discount. Freight - in amounts to $0.10 per square foot. Basic
wages of the assembly line personnel are $13 per hour. Payroll taxes are approximately 20% of wages. Benefits
amount to $2 per hour. How much is the direct materials cost standard per square foot?
OA. $7.00
OB. $22.00
OC. $15.00
OD. $7.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c4006ef-de4b-4f82-aa94-01e0390f20c4%2F70f54481-ccb4-427b-81cb-c1b1d08f6bcf%2Fbe70is7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from
the supplier are $7 per square foot, net of purchase discount. Freight - in amounts to $0.10 per square foot. Basic
wages of the assembly line personnel are $13 per hour. Payroll taxes are approximately 20% of wages. Benefits
amount to $2 per hour. How much is the direct materials cost standard per square foot?
OA. $7.00
OB. $22.00
OC. $15.00
OD. $7.10
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