Essay
Pittmon Corporation is developing direct labor standards. The basic direct labor wage rate is $13.90 per hour. Employment taxes are 10% of the basic wage rate. Fringe benefits are $4.28 per hour. A particular product requires 0.90 direct labor-hours per unit. The allowance for breaks and personal needs is 0.07 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit.
Required:
a. Determine the standard rate per direct labor-hour. Show your work!
b. Determine the standard direct labor-hours per unit of product. Show your work!
c. Determine the standard labor cost per unit of product to the nearest cent. Show your work!
Correct Answer:
Verified
Correct Answer:
Verified
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