The following direct labor information pertains to the manufacture of product Glaze: What is the standard direct labor cost per unit of product Glaze? (CPA adapted)
$$\begin{array} { | l | l | }
\hline \text { Time required to make one unit } & 3 \text { direct labor } \
\text { hours } \
\hline \text { Number of direct workers } & 25 \
\hline \text { Number of productive hours per week, } & 36 \
\text { per worker } & \$ 700 \
\hline \text { Weekly wages per worker } & 30 \% \text { of wages } \
\hline \text { Workers' benefits treated as direct labor } \
\text { costs } & \
\hline
\end{array}$$
A) $19.44.
B) $25.28.
C) $58.33.
D) $75.83.

Question

The following direct labor information pertains to the manufacture of product Glaze: What is the standard direct labor cost per unit of product Glaze? (CPA adapted)
$$\begin{array} { | l | l | } 
\hline \text { Time required to make one unit } & 3 \text { direct labor } \
\text { hours } \
\hline \text { Number of direct workers } & 25 \
\hline \text { Number of productive hours per week, } & 36 \
\text { per worker } & \$ 700 \
\hline \text { Weekly wages per worker } & 30 \% \text { of wages } \
\hline \text { Workers' benefits treated as direct labor } \
\text { costs } & \
\hline
\end{array}$$
A) $19.44.
B) $25.28.
C) $58.33.
D) $75.83.

Quizplus · Accepted Answer

The standard direct labor cost per unit is calculated by determining the total labor cost per hour and multiplying it by the hours required per unit. Weekly wages per worker are $700, and each worker works 36 hours, so the hourly wage is $700/36. Adding 30% for benefits, the total hourly cost is ($700/36) * 1.3. Multiply this by 3 hours to get the cost per unit.

The Following Direct Labor Information Pertains to the Manufacture of Product