Waterstone Industries Is Setting Standard Costs for One of Its

Multiple Choice

Waterstone Industries is setting standard costs for one of its products.The main material is fiber board sold by the square foot.The current cost of fiber board is $4.00 per square foot from Waterstone's preferred supplier.Delivery costs are $0.25 per board foot.Waterstone's wages per hour are $25.00.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?

A) $9.25 per hour.
B) $4.00 per hour.
C) $4.25 per hour.
D) $7.85 per hour.
E) None of the answers is correct.