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 $4.00 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
D) $29.00
Explanation: Direct labor cost standard = Wages per hour + Payroll costs per hour + Benefits per hour
You might also like to view...
Life insurance proceeds payable to a corporation upon the death of an insured employee are an example of
A) intraperiod tax allocation. B) interperiod tax allocation. C) a permanent difference. D) a temporary difference.
The unexpired cost of a plant asset is referred to as its
a. depreciable cost. b. carrying value. c. accumulated depreciation. d. original cost.
In a 1976 discussion memorandum, the FASB defined the new entity approach to accounting for business combinations as a method which:
a. results in the assets and liabilities of the subsidiary being valued at market value at the time of acquisition, and the parent’s assets and liabilities being valued at book value. b. results in the assets and liabilities of the parent being valued at market value at the time of acquisition, and the subsidiary’s assets and liabilities being valued at book value. c. results in all entities’ assets and liabilities being revalued to market values at the time the combination originates. d. uses the book values of the combining companies.
An advantage of internal development as a means of acquiring new technology is that
A. it does not require firms to maintain a large staff. B. the technology is proprietary and it provides a competitive edge. C. it is simple to implement and cost-effective. D. the costs associated with new technology development can be shared by two or more firms. E. it permits firms to access unique technology for a minimal fee.