Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?
A)$25.72
B)$23.20
C)$16.79
D)$19.31

Question

Quizplus · Accepted Answer

The standard rate per direct labor hour is calculated by adding the basic direct labor rate, payroll taxes, and fringe benefits: $16.79 + ($16.79 * 0.15) + $6.41 = $25.72.

Piper Corporation, Which Manufactures Dog Toys, Is Developing Direct Labor