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A Company Is Setting Its Direct Materials and Direct Labor

question 59

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product.Direct materials cost from the supplier are $9 per square foot,net of purchase discount.Freight-in amounts to $0.40 per square foot.Basic wages of the assembly line personnel are $14 per hour.Payroll taxes are approximately 21% of wages.Benefits amount to $2 per hour.How much is the direct materials cost standard per square foot?


Definitions:

Hepatic Duct

A duct that leaves the liver carrying bile and merges with the cystic duct to form the common bile duct.

Cystic Duct

The duct from the gallbladder that merges with the hepatic duct to form the common bile duct.

Duodenum

The first section of the small intestine.

Digestive System

The organs and glands in the body responsible for the process of digestion, which includes ingestion, breakdown, absorption, and elimination of food.

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