Question

Labor data for making one pound of finished product in Curling Co. are as follows: Price-hourly wage rate $11.00, payroll taxes $1.80, and fringe benefits $1.20. Quantity-actual production time 1.1 hours, rest periods and clean up 0.25 hours, and setup and downtime 0.15 hours. Compute the following. (Round answers to 2 decimal places, e.g. 52.75.) Standard direct labor rate per hour Standard direct labor hours per pound hours Standard cost per pound.

Answer 1

Answer:

Standard direct labor rate per hour $14

Standard direct labor hours per pound hours 1.5 hours

Standard cost per pound $21

Explanation:

The computation is shown below:

For Standard direct labor rate per hour:

= Price-hourly wage rate + payroll taxes + fringe benefits

= $11 + $1.80 + $1.20

= $14

For Standard direct labor hours per pound hours:

=  Quantity-actual production time hours + rest periods and clean up hours + setup and downtime hours

= 1.1 + 0.25 + 0.15

= 1.5 hours

For Standard cost per pound:

= Standard direct labor rate per hour × Standard direct labor hours per pound hours

= $14 × 1.5 hours

= $21