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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 $7 per square​ foot, net of purchase discount. Freight−in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $17 per hour. Payroll taxes are approximately 20​% of wages. Benefits amount to $4 per hour. How much is the direct materials cost standard per square​ foot?   A. $21.00   B. $7.00   C. $28.00   D. $7.40

A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $7 per square​ foot, net of purchase discount. Freight−in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $17 per hour. Payroll taxes are approximately 20​% of wages. Benefits amount to $4 per hour. How much is the direct materials cost standard per square​ foot?   A. $21.00   B. $7.00   C. $28.00   D. $7.40

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter15: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....
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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
$7 per square​ foot, net of purchase discount. Freight−in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $17 per hour. Payroll taxes are approximately 20​% of wages. Benefits amount to $4 per hour. How much is the direct materials cost standard per square​ foot?
 
A. $21.00
 
B. $7.00
 
C. $28.00
 
D. $7.40
 
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