Piper Corporation, Which Manufactures Dog Toys, Is Developing Direct Labor

question 110

Multiple Choice

Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?

• A)$25.72
• B)$23.20
• C)$16.79
• D)$19.31

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Definitions:

Spot Rates

The present cost at which a specific asset is available for purchase or sale with immediate delivery.

Selling Price

The amount of money for which an item is sold to a buyer.

Hedge Transaction

A financial agreement or trade designed to reduce or eliminate the risk of future price fluctuations.

Forward Rate

A future exchange rate negotiated today, locking in the price at which a currency transaction will occur at a specified future date.