The Following Direct Labor Information Pertains to the Manufacture of Product

question 73

Multiple Choice

The following direct labor information pertains to the manufacture of product Scour: What is the standard direct labor cost per unit of product Scour? (CPA adapted)
$$\begin{array} { | l | l | } \hline \text { Time required to make one unit } & 2 \text { direct labor } \\\text { hours } \\\hline \text { Number of direct workers } & 50 \\\hline \text { Number of productive hours per week, } & 40 \\\text { per worker } & \$ 500 \\\hline \text { Weekly wages per worker } & 20 \% \text { of wages } \\\hline \text { Workers' benefits treated as direct labor } \\\text { costs } & \\\hline\end{array}$$

• A) $30.
• B) $24.
• C) $15.
• D) $12.

---

Definitions:

Marginal Social Cost

The comprehensive expense to society for creating another unit of a product or service, encompassing both individual costs and any external factors.

Pollution

The occurrence or release of harmful or toxic materials into the environment.

External Costs

Costs that are not borne by the parties to a transaction but are imposed on others, such as pollution affecting non-participants.

Output

The amount of goods or services produced by a company, industry, or economy in a given period.