Question

A company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier are $5 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $10 per hour. Payroll taxes are approximately 20% of wages. How much is the direct labor cost standard (per hour)?
Select one:

A. $12 per hour

B. $17 per hour

C. $10 per hour

D. $2 per hour

Answer 1

The answer is 12$ per hour