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​ $6.00 per square foot from the supplier. Delivery costs are​ $0.25 per square foot.​ Carpenters' wages are​ $30.00 per hour. Payroll costs are​ $3.60 per​ hour, and benefits are​ $6.00 per hour. How much is the direct labor standard cost per​ hour

Answer 1

Answer: the correct answer is $39.60 per hour.

Explanation: since the question is about labor standard costs per hour, we have to set aside the material costs and focus on the labor costs. We have to add all the labor costs which means we have to add Carpenters's wage plus Payroll costs plus benefits that is $ 30.00 plus $3.60 plus $6.00 equals $39.60 per hour.