A company is setting its direct materials and direct labor standards for its leading product. Direct...

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A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $5.00 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $14.00 per hour. Payroll taxes are approximately 22% of wages. Benefits amount to $4.00 per hour. How much is the direct materials cost standard per square foot? A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $5.00 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $14.00 per hour. Payroll taxes are approximately 22% of wages. Benefits amount to $4.00 per hour. How much is the direct materials cost standard per square foot?

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To calculate the direct materials cost standard per square foot we need to consider the cost ... View the full answer