Oak Valley Company,a custom cabinet manufacturing company,is setting standard costs for one of its products.The main material is cedar wood,sold by the square foot.The current cost of cedar wood is $8.00 per square foot from the supplier.Delivery costs are $0.25 per square foot.Carpenters' wages are $25.00 per hour.Payroll costs are $3.60 per hour,and benefits are $6.00 per hour.How much is the direct materials standard cost per square foot?

Question

Quizplus · Accepted Answer

To calculate the direct materials standard cost per square foot, we need to add the cost of cedar wood and delivery costs. Therefore, 
Direct materials standard cost per square foot = Cost of cedar wood per square foot + Delivery costs per square foot 
Direct materials standard cost per square foot = $8.00 + $0.25 = $8.25 
Therefore, the answer is C.

Oak Valley Company,a Custom Cabinet Manufacturing Company,is Setting Standard Costs