The following direct labor information pertains to the manufacture of product Scour:
$$\begin{array} { l c }
\text { Time required to make one unit } & \text { 2direct labor hours } \
\text { Number of direct workers } & 50 \
\text { Number of productive hours per week, per worker } & 40 \
\text { Weekly wages per worker } & \$ 500 \
\text { Workers' benefits treated as direct labor costs } & 20 \% \text { of wages }
\end{array}$$
What is the standard direct labor cost per unit of product Scour? (CPA adapted)
A) $30.
B) $24.
C) $15.
D) $12.

Question

The following direct labor information pertains to the manufacture of product Scour:
$$\begin{array} { l c } 
\text { Time required to make one unit } & \text { 2direct labor hours } \
\text { Number of direct workers } & 50 \
\text { Number of productive hours per week, per worker } & 40 \
\text { Weekly wages per worker } & \$ 500 \
\text { Workers' benefits treated as direct labor costs } & 20 \% \text { of wages }
\end{array}$$
What is the standard direct labor cost per unit of product Scour? (CPA adapted)
A) $30.
B) $24.
C) $15.
D) $12.

Quizplus · Accepted Answer

The standard direct labor cost per unit is calculated as follows:  1. Calculate the total weekly wages per worker including benefits: $500 + (20% of $500) = $600.  2. Calculate the hourly wage rate: $600 / 40 hours = $15 per hour.  3. Calculate the direct labor cost per unit: 2 hours per unit * $15 per hour = $30.

The Following Direct Labor Information Pertains to the Manufacture of Product