A Company Is Setting Its Direct Materials and Direct Labor

question 144

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier are $5 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $10 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $2 per hour. How much is the direct material cost standard (per square foot) ?

• A)$5.10 per square foot
• B)$5.00 per square foot
• C)$12.00 per square foot
• D)$17.10 per square foot

---

Definitions:

Ethnic Minority

A group of people who differ in race, religion, or cultural background from the majority population in a specific area.

Cultural Background

Cultural background encompasses the societal, ethnic, linguistic, and familial influences that shape an individual's experiences and worldview.

Magnetic Field

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.

Clinical Interview

A method used in psychology to gather information about an individual's psychological state through direct conversation, often used in diagnosis and assessment processes.