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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