A Company Is Setting Its Direct Materials and Direct Labor

question 97

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product.Direct material costs from the supplier are $9 per square foot,net of purchase discount.Freight-in amounts to $0.20 per square foot.Basic wages of the assembly line personnel are $14 per hour.Payroll taxes are approximately 22% of wages.How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.)

• A)$3.08
• B)$14.00
• C)$17.08
• D)$26.08

---

Definitions:

Negatively Related

A relationship between two variables where one variable increases as the other decreases, indicating an inverse correlation.

Value

The importance, worth, or usefulness of something or the financial benefit that a good or service brings to its purchaser.

Up

An increase or rise in value, level, or quantity.

X-variable

Typically refers to an independent variable in mathematical functions or statistical models, representing an input or cause that might affect an outcome.