Vasquez, Inc.is establishing the direct materials and direct labor standards for its leading product.Materials cost from the supplier are $5 per square foot, net of purchase discount.Freight-in amounts to $0.10 per square foot.Basic wages of the assembly line personnel are $10 per hour.Payroll taxes are approximately 20% of wages.Beneﬁts amount to $2 per hour.How much is the direct material cost standard per square foot?
A)$5.00 per square foot.
B)$5.10 per square foot.
C)$12.00 per square foot.
D)$17.10 per square foot.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

Direct material cost standard per square foot = Materials cost + Freight-in
= $5 + $0.10
= $5.10 per square foot.