Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?

Question

Business

Evie Austin

22 November, 20:33

Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?

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Answers (1)

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Lyla Maddox · Answer 1

direct labor hour 25.72

Explanation:

16.79 + 15% taxes + vacation and HI 6,41

16.79 + 16.79 x 15% + 6.41

16.79 + 2.5185 + 6.41 = 25.7185 = 25.72

Notes:

The assignment state the payroll taxes only apply to the basic direct labor rate, so we should assume the fringe benefit are tax-exempt