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

Castillo

Business

31 March, 12:01

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?

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Answers (1)

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Gabriella Willis · 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.