A Company Is Setting Its Direct Materials and Direct Labor

question 144

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier are $5 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $10 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $2 per hour. How much is the direct material cost standard (per square foot) ?

• A)$5.10 per square foot
• B)$5.00 per square foot
• C)$12.00 per square foot
• D)$17.10 per square foot

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Definitions:

Inbreeding

The mating of closely related individuals, which can increase the chance of offspring inheriting identical copies of genes from both parents, potentially leading to a greater risk of recessive genetic disorders.

Deleterious Alleles

Deleterious alleles are variants of genes that negatively affect the fitness or survival of an individual carrying them.

Homozygosity

The state of having two identical alleles at a particular gene locus, leading to the expression of a specific trait.

Fixing Beneficial Allele

The process by which a beneficial genetic variation becomes established, or fixed, in a population, often leading to evolutionary advantages.