Artscapes Company Is Setting Its Direct Materials and Direct Labor

question 140

Multiple Choice

Artscapes Company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier are $4.50 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $3.00 per hour. How much is the direct material price standard (per square foot) ?

• A) $4.60 per square foot
• B) $4.00 per square foot
• C) $3.90 per square foot
• D) $16.50 per square foot

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Definitions:

Tickets

Documents or electronic codes that grant the holder the right to admission to an event, transport service, or other specific activities.

Price Elasticity

Evaluates the responsiveness of product demand to variations in its market price.

Demand Function

A mathematical representation showing the quantity of a good or service consumers are willing and able to purchase at different prices.

Tickets

Official documents or electronic codes that grant the holder permission to enter an event, travel on a vehicle, or participate in a particular activity.