Wood Designs Company, a custom cabinet manufacturing company, is setting standar

Question

Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct materials cost standard (per square foot)? $9.25 per square foot $7.85 per square foot $4.25 per square foot $4.00 per square foot

Explanation / Answer

Per Squire foot Direct Material Cost 4 Add: Delivery Cost 0.25 Total Material Cost 4.25 Answer: c)

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