Schoenfeld Corporation is developing direct labor standards. The basic direct la

Question

Schoenfeld Corporation is developing direct labor standards. The basic direct labor wage rate is $10.00 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $3.71 per direct labor-hour. A particular product requires 0.88 direct labor-hours per unit. The allowance for breaks and personal needs is 0.06 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.09 direct labor-hours per unit.

The standard rate per direct labor-hour should be:

a. $4.61 b. $10.00 c. $5.39 d. $14.61

Explanation / Answer

d. $14.61 Working: Basic wage rate = $10 Tax 9% = $0.9 Fringe benefits = $3.71 Standard rate per direct labor hour = $14.61 Basic wage rate = $10 Tax 9% = $0.9 Fringe benefits = $3.71 Standard rate per direct labor hour = $14.61
Thank you..... Basic wage rate = $10 Tax 9% = $0.9 Fringe benefits = $3.71 Standard rate per direct labor hour = $14.61

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