Schoenfeld Corporation is developing direct labor standards. The basic direct labor wage rate is $10.00 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $3.71 per direct labor-hour. A particular product requires 0.88 direct labor-hours per unit. The allowance for breaks and personal needs is 0.06 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.09 direct labor-hours per unit.
-The standard direct labor-hours per unit should be:
A) 0.88
B) 1.03
C) 0.73
D) 0.82

Question

Quizplus · Accepted Answer

To calculate the standard direct labor-hours per unit, we need to add all the time allowances (breaks and personal needs, cleanup, machine downtime, and rejects) to the direct labor-hours required per unit:
0.88 + 0.06 + 0.09 = 1.03 
Therefore, the best choice is B, with a standard direct labor-hours per unit of 1.03.

Schoenfeld Corporation Is Developing Direct Labor Standards