A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $8.00 per square foot, net of purchase discount. Freight−in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 24% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) A. $14.88 B. $2.88 C. $12.00 D. $22.88
A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $8.00 per square foot, net of purchase discount. Freight−in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 24% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) A. $14.88 B. $2.88 C. $12.00 D. $22.88
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are
$8.00
per square foot, net of purchase discount.
Freight−in
amounts to
$0.10
per square foot. Basic wages of the assembly line personnel are
$12.00
per hour. Payroll taxes are approximately
24%
of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.)$14.88
$2.88
$12.00
$22.88
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