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:

Interpreter

A person who translates spoken or signed communication between speakers of different languages.

Advisor

A person who provides expert advice or guidance in a particular area, such as financial, educational, or career advising.

Boundary-management Behavior

The actions taken by individuals or groups to manage and maintain the distinction between different roles, tasks, or work and personal life.

Organization-focused Behavior

Actions and attitudes of individuals within an organization that are primarily directed toward supporting organizational goals and success.