The following direct labor information relates to the manufacture of televisions. Number of workers 60 Number of product hours per week, per worker 40 Hours required to make 1 unit 3 Weekly wages per worker $600 Employee benefits treated as direct labor costs 20% of wages What is the standard direct labor cost per unit

Question

Eliza Norton

Business

11 February, 05:08

The following direct labor information relates to the manufacture of televisions. Number of workers 60 Number of product hours per week, per worker 40 Hours required to make 1 unit 3 Weekly wages per worker $600 Employee benefits treated as direct labor costs 20% of wages What is the standard direct labor cost per unit

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Anderson · Answer 1

The standard direct labor cost per unit is $54

Explanation:

Number of workers = 60

Number of product hours per week, per worker 40 Hours required to make 1 unit 3

Weekly wages per worker $600

Employee benefits treated as direct labor costs 20% of wages

Direct labor cost per worker = 600 + (600 * 0.2) = $720

Standard direct labor cost per unit of product Scour = 720 : (40:3) = $54