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Oak Valley​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main material is cedar​ wood, sold by the square foot. The current cost of cedar wood is $8 per square foot from the supplier. Delivery costs are $0.20 per square foot.​ Carpenters' wages are $30 per hour. Payroll costs are $3.00 per​ hour, and benefits are $5 per hour. How much is the direct materials standard cost per square​ foot? A. $8.20

Oak Valley​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main material is cedar​ wood, sold by the square foot. The current cost of cedar wood is $8 per square foot from the supplier. Delivery costs are $0.20 per square foot.​ Carpenters' wages are $30 per hour. Payroll costs are $3.00 per​ hour, and benefits are $5 per hour. How much is the direct materials standard cost per square​ foot? A. $8.20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oak Valley​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main material is cedar​ wood, sold by the square foot. The current cost of cedar wood is
$8
per square foot from the supplier. Delivery costs are
$0.20
per square foot.​ Carpenters' wages are
$30
per hour. Payroll costs are
$3.00
per​ hour, and benefits are
$5
per hour. How much is the direct materials standard cost per square​ foot?
 
A. $8.20
 
B. $11.20
 
C. $13.20
 
D. $8.00
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