Cedar Designs 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 $0.20 per square foot.Carpenters' wages are $20.00 per hour.Payroll costs are $3.00 per hour,and benefits are $6.00 per hour.How much is the direct labor standard cost per hour?
A) $20.00
B) $9.00
C) $23.00
D) $29.00

Question

Quizplus · Accepted Answer

D) Direct labor cost standard = Wages per hour + Payroll costs per hour + Benefits per hour 11ea8870_362b_8da8_bb89_a5dc0b4db6c9_TB5025_00

Cedar Designs Company,a Custom Cabinet Manufacturing Company,is Setting Standard Costs