Answer (B) is correct . The standard direct labor unit cost equals 3 hours times the cost per DLH. This amount is determined by adding employee benefits to weekly wages and dividing by hours per week.Weekly wages $245.00 Add:benefits ($245*0.25) 61.25. Weekly total compensation $306.25 Divided by: hours/week 35 Cost per DL hour $8.75 Times: DL hours per unit 3 Unit DL cost $26.25
Answer (A) is incorrect because The amount of $21.00 excludes employee benefits.
Answer (C) is incorrect because Using employee benefits as 40%, not 25%, of weekly wages results in $29.40.
Answer (D) is incorrect because Dividing weekly wages plus benefits by 25 employees instead of 35 weekly productive hours per employee results in $36.75.
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