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BACK NEXT purchase price is $2 per pound, but a 2% discount is usually taken Fre

ID: 2431680 • Letter: B

Question

BACK NEXT purchase price is $2 per pound, but a 2% discount is usually taken Freight costs are $0.1 per pound, and receiving and handling costs are S0.07 per $15 per hour, but a raise which will average $0.40 will go into effect soon. Payroll taxes are $1.30 per hour, and fringe benefits average $2.50 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively. The hourly wage rate is The standard direct labor rate per hour after the raise is going to be O $18.80. $19.20. 2

Explanation / Answer

Answer is $19.20

Explanation;

The standard direct labor rate per hour after the raise is going to be, will be calculated as follow;

Hourly wage rate

$15

Raise

$0.40

Payroll taxes

$1.30

Fringe benefits

$2.50

Standard direct labor rate per hour after the raise

$19.20

Hourly wage rate

$15

Raise

$0.40

Payroll taxes

$1.30

Fringe benefits

$2.50

Standard direct labor rate per hour after the raise

$19.20