Oak Valley Company,a Custom Cabinet Manufacturing Company,is Setting Standard Costs

question 11

Multiple Choice

Oak Valley Company,a custom cabinet manufacturing company,is setting standard costs for one of its products.The main material is cedar wood,sold by the square foot.The current cost of cedar wood is $6.00 per square foot from the supplier.Delivery costs are $0.20 per square foot.Carpenters' wages are $20.00 per hour.Payroll costs are $4.00 per hour,and benefits are $5.00 per hour.How much is the direct materials standard cost per square foot?

• A) $11.20
• B) $10.20
• C) $6.20
• D) $6.00

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Definitions:

Positive Inequity

A situation in social psychology where an individual perceives that they are receiving more than they believe they deserve compared to others, impacting motivation and satisfaction.

Negative Inequality

Refers to situations where resources or benefits are distributed among individuals or groups in a way that is perceived as unfairly disadvantageous.

Company

An organization engaged in commercial, industrial, or professional activities.

Basic Causes

Fundamental reasons or root factors that lead to a particular outcome or condition, often underlying more immediate or apparent causes.