Artscapes Company Is Setting Its Direct Materials and Direct Labor

Multiple Choice

Artscapes Company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier are $4.50 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $3.00 per hour. How much is the direct labor price standard (per hour) ?

A) $17.40 per hour
B) $15.00 per hour
C) $14.40 per hour
D) $16.50 per hour