Theresa Corporation, Which Manufactures Baskets, Is Developing Direct Labor Standards

question 99

Multiple Choice

Theresa Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $21.00 per hour. Payroll taxes are 9% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $4.00 per hour. What is the standard rate per direct labor hour?

• A)$26.89
• B)$21.00
• C)$22.89
• D)$25.00

Comprehend the recording and reporting of business transactions and the impact on financial statements.

Recognize the distinctive roles of different types of business entities, including limited liability companies.

Understand the basics of the accounting equation and its components.

Understand the concept of accounts receivable and its significance in business transactions.

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Definitions:

Representativeness

The degree to which a particular sample reflects the characteristics of its larger population.

Stereotype

A fixed, oversimplified image or idea of a particular type of person or thing, often based on limited information and used to categorize individuals or groups.

Expected Value

A calculated average outcome of a probabilistic event, quantifying the expectation of an event's outcome as a single numerical value.

Lottery Ticket

A slip of paper or digital token used in a lottery game where players select numbers or symbols hoping to match a draw for monetary or other prizes.