Vasquez, Inc

Multiple Choice

Vasquez, Inc.is establishing the 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.Benefits amount to $2 per hour.How much is the direct material cost standard per square foot?

A) $5.00 per square foot.
B) $5.10 per square foot.
C) $12.00 per square foot.
D) $17.10 per square foot.
E) None of the answers is correct.