Question

Cedar Designs 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 $8.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $20.00 per hour. Payroll costs are $3.00 per hour, and benefits are $6.00 per hour. How much is the direct labor standard cost per hour

Answer 1

Answer:

$29.00

Explanation:

Direct labor time standard consists of basic time plus allowance for breaks, downtime and rejections.

The direct labor standard cost per hour will be a combination of all factors relating to labor:

Carpenters' wages are $20.00 per hour.

Payroll costs are .............$3.00 per hour,

and benefits are .............$6.00 per hour.

Standard labor cost IS..$29.00 per hour.