Sunrise Manufacturing has the following labor data for producing one liter of their specialty cleaning solution: (1) Base hourly wage $16.50, social security tax $1.10, and health benefits $1.40 (2) Time requirements: Direct production time 0.9 hours, mandatory breaks 0.20 hours, and equipment calibration time 0.10 hours Calculate: a) Standard Direct Labor Rate Per Hour b) Standard Direct Labor Hours Per Liter c) Standard Labor Cost Per Liter

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Sunrise Manufacturing has the following labor data for
producing one liter of their specialty cleaning solution:
(1) Base hourly wage $16.50, social security tax $1.10,
and health benefits $1.40
(2) Time requirements: Direct production time 0.9 hours,
mandatory breaks 0.20 hours, and equipment calibration
time 0.10 hours
Calculate:
a) Standard Direct Labor Rate Per Hour
b) Standard Direct Labor Hours Per Liter
c) Standard Labor Cost Per Liter
Transcribed Image Text:Sunrise Manufacturing has the following labor data for producing one liter of their specialty cleaning solution: (1) Base hourly wage $16.50, social security tax $1.10, and health benefits $1.40 (2) Time requirements: Direct production time 0.9 hours, mandatory breaks 0.20 hours, and equipment calibration time 0.10 hours Calculate: a) Standard Direct Labor Rate Per Hour b) Standard Direct Labor Hours Per Liter c) Standard Labor Cost Per Liter
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