Timberline Corporation, which manufactures wooden furniture, is developing direct labor standards. The basic direct labor rate is $23 per hour. Payroll taxes are 18% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance are $9 per hour. What is the standard rate per direct labor hour?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2Q: Burnham Industries incurs these costs for the month: What is the prime cost?
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Timberline Corporation, which manufactures wooden furniture, is developing direct labor standards. The basic direct labor rate is $23 per hour. Payroll taxes are 18% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance are $9 per hour. What is the standard rate per direct labor hour?

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