Question

The following direct labor information pertains to the manufacture of product Glu: Time required to make one unit 2 direct labor hours Number of direct workers 50 Number of productive hours per week, per worker 40 Weekly wages per worker $500 Workers' benefits treated as direct labor costs 20% of wages What is the standard direct labor cost per unit of product Glu?

Answer 1

option - (d) P30.

Step-by-step explanation:

Answer - The answer to this question is option - (d) P30.

It is calculated as follows -

As per question -

Number of productive hours per week - 40

Weekly Wages Per Worker - P500

So, Wage rate for 1 hour per worker = P500 / 40 = P12.5 per hour

As mentiones, Time required for making 1 unit = 2 hours

So Wages would be = P12.5 × 2 = P25

Also, as mentioned, Benefits treated as part of wages = 20% of wages

So Standard Direct Manufacturing Cost = P25 × 1.2 = P30

So, P30 is the final answer here.