A Company Is Setting Its Direct Materials and Direct Labor

question 59

Multiple Choice

A company is setting its direct materials and direct labor standards for its leading product.Direct materials cost from the supplier are $9 per square foot,net of purchase discount.Freight-in amounts to $0.40 per square foot.Basic wages of the assembly line personnel are $14 per hour.Payroll taxes are approximately 21% of wages.Benefits amount to $2 per hour.How much is the direct materials cost standard per square foot?

• A) $9.40
• B) $9.00
• C) $16.00
• D) $25.00

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Definitions:

Responsiveness

The ability of a business or organization to quickly and effectively reply to customer inquiries, complaints, or needs.

Customer Relationships

The interactions and engagements a business has with its customers, aimed at building loyalty and long-term customer satisfaction.

Innovativeness

The quality of being able to introduce new ideas, originality, and creativity.

Service Quality

The measure of how well a delivered service matches the customer's expectations.