A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $8.00 per square foot, net of purchase discount. Freight−in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 24% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) A. $14.88 B. $2.88 C. $12.00 D. $22.88

A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $8.00 per square foot, net of purchase discount. Freight−in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 24% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) A. $14.88 B. $2.88 C. $12.00 D. $22.88

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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