Developing direct labor cost standards Brass Creations Co. makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Cambridge model pedestal. The standards follow, along with the costaccountant’s determination of current labor pay rates:Worktype 1 . . . . . . . . . . . . . . . . . . . . . . 0.20 hour @ $18.40 per hourWorktype 2 . . . . . . . . . . . . . . . . . . . . . . 0.30 hour @ $16.50 per hourWorktype 3 . . . . . . . . . . . . . . . . . . . . . . 0.42 hour @ $28.00 per hourRequired:a. Using the preceding data, calculate the direct labor cost for a Cambridge modelpedestal.b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Explain your answer.
Developing direct labor cost standards Brass Creations Co. makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Cambridge model pedestal. The standards follow, along with the cost
accountant’s determination of current labor pay rates:
Worktype 1 . . . . . . . . . . . . . . . . . . . . . . 0.20 hour @ $18.40 per hour
Worktype 2 . . . . . . . . . . . . . . . . . . . . . . 0.30 hour @ $16.50 per hour
Worktype 3 . . . . . . . . . . . . . . . . . . . . . . 0.42 hour @ $28.00 per hour
Required:
a. Using the preceding data, calculate the direct labor cost for a Cambridge modelpedestal.
b. Would it be appropriate to use the cost calculated in part a as a
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