Waterstone Industries is setting standard costs for one of its products.The main material is ﬁber board sold by the square foot.The current cost of ﬁber board is $4.00 per square foot from Waterstone's preferred supplier.Delivery costs are $0.25 per board foot.Waterstone's wages per hour are $25.00.Payroll costs are $3.60 per hour and beneﬁts are $5.00 per hour.How much is the direct labor cost standard per hour?
A)$33.60 per hour.
B)$28.00 per hour.
C)$25.00 per hour.
D)$25.60 per hour.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

The direct labor cost standard per hour includes wages, payroll costs, and benefits: $25.00 (wages) + $3.60 (payroll costs) + $5.00 (benefits) = $33.60 per hour.

Waterstone Industries Is Setting Standard Costs for One of Its