Theresa Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $21 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $8 per hour. What is the standard rate per direct labor hour? A. $21 B. $24.15 C. $32.15 D. $ 29
Theresa Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $21 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $8 per hour. What is the standard rate per direct labor hour? A. $21 B. $24.15 C. $32.15 D. $ 29
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...
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Transcribed Image Text:Theresa Corporation, which manufactures baskets, is developing direct
labor standards. The basic direct labor rate is $21 per hour. Payroll
taxes are 15% of the basic direct labor rate, while fringe benefits such
as vacation and health care insurance, are $8 per hour.
What is the standard rate per direct labor hour?
A. $21
B. $24.15
C. $32.15
D. $ 29
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