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GenaCL600 [577]
3 years ago
11

Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $12.00 per

hour. Payroll taxes are 13% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.00 per hour. What is the standard rate per direct labor hour?
Business
1 answer:
Alex787 [66]3 years ago
6 0

Answer:

Total= $19.56

Explanation:

Giving the following information:

The basic direct labor rate is $12.00 per hour. Payroll taxes are 13% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.00 per hour.

<u>The direct labor standard rate per hour is calculated using the direct labor rate, the taxes and fringe benefits.</u>

Standard direct labor rate:

Direct labor rate= 12

Payroll taxes= (12*0.13)= 1.56

Fringe benefits= 6

Total= $19.56

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