Carpenter wages are 30 per hour. Payroll costs are 3 per hour and benefits are 5 per hour. How much is the direct labor standard cost per hour?

Question

Business

Arturo Cabrera

5 January, 02:13

Carpenter wages are 30 per hour. Payroll costs are 3 per hour and benefits are 5 per hour. How much is the direct labor standard cost per hour?

+4

Answers (1)

Know the Answer?

Damien Bishop · Answer 1

30 per hour

Explanation:

The answer it's 30/hour because only the wages are related to the time taken to produce a unit, the others cost are overhead costs, it means that the Payroll cost it's fixed and not dependant of the time tu produce a unit, and the benefits could be a bono at the end of the year that neither varies with the quantities of units.

The only costs associated to production are the wages.