Question

The following direct labor information relates to the manufacture of televisions. Number of workers 60 Number of product hours per week, per worker 40 Hours required to make 1 unit 3 Weekly wages per worker $600 Employee benefits treated as direct labor costs 20% of wages What is the standard direct labor cost per unit

Answer 1

Answer:

The standard direct labor cost per unit is $54

Explanation:

Number of workers = 60

Number of product hours per week, per worker 40 Hours required to make 1 unit 3

Weekly wages per worker $600

Employee benefits treated as direct labor costs 20% of wages

Direct labor cost per worker = 600 + (600 × 0.2) = $720  

Standard direct labor cost per unit of product Scour = 720 ÷ (40÷3) = $54