Question

The following direct labor Information pertains to the manufacture of product Glaze: 3 direct labor hours 25 Time required to make one unit Number of direct workers Number of productive hours per week, per worker Weekly wages per worker Workers' benefits treated as direct labor costs 36 $700 30% of wages What is the standard direct labor cost per unit of product Glaze? (CPA adapted) Multiple Choice $19.44 O $75 B O $25.28 O C $58.33 < Prey 22 of 50 Next >

Answer 1

Weekly wages per worker = $700

Worker's benefits = 30% of wages

= 700 x 30%

= $210

Total weekly labor cost = Weekly wages + Worker's benefits

= 700 + 210

= $910

Number of hours per week = 36

Direct labor rate = Total weekly labor cost/Number of hours per week

= 910/36

= $25.28 per hour

Time required to make 1 unit = 3 hours

Standard direct labor cost per unit = Direct labor rate x Time required to make 1 unit

= 25.28 x 3

= $75.83

Second option is the correct option.

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