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

Grasp how products and services are moved from the producer to the consumer.

Differentiate between transactional, logistical, and facilitating functions of intermediaries.

Acknowledge the complexity and challenges of managing a supply chain.

Learn about the role and impact of regulatory bodies and policies on distribution channels.

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Definitions:

Revenue Generated

The total amount of income produced by the sale of goods or services related to a company's primary operations.

Patent Law

The area of law concerned with giving inventors the exclusive right to benefit from their inventions for a certain period.

Inventors

Individuals who create something novel and useful, often securing patents for their innovations to protect the intellectual property.

Patented Invention

A device, method, or process that has been protected by a patent, granting the inventor exclusive rights to use, make, or sell it.