Happy Helpers Maid Service Is Calculating Its Standard Direct Labor

question 51

Multiple Choice

Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $19 per hour. Happy Helpers incurs payroll tax expense of 12% of the direct labor rate and incurs costs for sick-days and vacation days of $3 per hour. What is the standard rate per direct labor hour?

• A)$22.00
• B)$24.28
• C)$19.00
• D)$21.28

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Definitions:

Profitability

The state or condition of yielding financial gain or profit.

Forward Buying

The practice of purchasing larger quantities of goods than immediately needed, usually to take advantage of discounted prices or to ensure supply.

Peak Period

Times when demand for goods or services is at its highest, often requiring additional resources or strategies to meet customer needs.

Variable Demand

Variability in consumer demand over time, impacting production, inventory levels, and supply chain planning.