Piper Corporation, Which Manufactures Dog Toys, Is Developing Direct Labor

Multiple Choice

Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?

A) $25.72
B) $23.20
C) $16.79
D) $19.31