Nadia Corporation, Which Manufactures Straw Hats, Is Developing Direct Labour

question 227

Multiple Choice

Nadia Corporation, which manufactures straw hats, is developing direct labour standards. The basic direct labour rate is $10.00 per hour. Payroll taxes are 12% of the basic direct labour rate, while fringe benefits such as vacation and health care insurance, are $4.00 per hour. What is the standard rate per direct labour hour?

• A) $15.20
• B) $10.00
• C) $14.00
• D) $11.20

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Definitions:

Prolactin

A hormone secreted by the anterior pituitary gland that stimulates milk production in mammals.

Anterior Pituitary

The front portion of the pituitary gland, responsible for producing and releasing hormones that regulate many bodily functions.

Glucagon

Glucagon is a hormone produced by the pancreas that raises blood glucose levels by promoting the breakdown of glycogen to glucose in the liver.

Progesterone

A hormone produced mainly by the ovaries involved in the menstrual cycle, pregnancy, and embryogenesis.