Wolanin Corporation,which manufactures straw hats,is developing direct labor standards.The basic direct labor rate is $20.00 per hour.Payroll taxes are 15% of the basic direct labor rate,while fringe benefits such as vacation and health care insurance,are $5.00 per hour.What is the standard rate per direct labor hour?

Question

Quizplus · Accepted Answer

The standard rate per direct labor hour includes the basic rate, payroll taxes, and fringe benefits: $20.00 + ($20.00 * 0.15) + $5.00 = $28.00.

Wolanin Corporation,which Manufactures Straw Hats,is Developing Direct Labor Standards