Georgia Custom Cabinet Company Is Setting Standard Costs for One

question 105

Multiple Choice

Georgia Custom Cabinet Company is setting standard costs for one of its products. The main material is cedar wood, sold by the board foot. The current cost of cedar wood is $2.00 per board foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $22.00 per hour. Payroll costs are $3.60 per hour and benefits are $3.00 per hour. How much is the direct materials price standard (per -board foot) ?

• A) $2.25 per board foot
• B) $2.00 per board foot
• C) $1.75 per board foot
• D) $22.00 per board foot

---

Definitions:

Superior

Above average in quality, rank, or importance.

Crucial

Extremely important or essential, especially concerning success or failure.

Interpersonal Skills

The abilities and behaviors a person uses to interact effectively with others, including communication, empathy, and conflict-resolution skills.

Performing Stage

A phase in team development where group members efficiently work together towards achieving their goals, characterized by high productivity and harmony.