A Company Is Setting Its Direct Materials and Direct Labor

question 111

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product.Direct materials cost from the supplier are $8 per square foot,net of purchase discount.Freight-in amounts to $0.10 per square foot.Basic wages of the assembly line personnel are $18 per hour.Payroll taxes are approximately 25% of wages.Benefits amount to $4 per hour.How much is the direct materials cost standard per square foot?

• A)$8.10
• B)$8.00
• C)$22.00
• D)$30.00