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A company is setting its 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. How much is the direct labor cost standard (per hour)?

Select one:

A. $12 per hour

B. $17 per hour

C. $10 per hour

D. $2 per hour

1 Answer

7 votes
The answer is 12$ per hour
User Resonance
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