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17 November, 20:04

The following direct labor information relates to the manufacture of televisions. Number of workers 60 Number of product hours per week, per worker 40 Hours required to make 1 unit 3 Weekly wages per worker $600 Employee benefits treated as direct labor costs 20% of wages What is the standard direct labor cost per unit

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  1. 17 November, 21:38
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    The standard direct labor cost per unit is $54

    Explanation:

    Number of workers = 60

    Number of product hours per week, per worker 40 Hours required to make 1 unit 3

    Weekly wages per worker $600

    Employee benefits treated as direct labor costs 20% of wages

    Direct labor cost per worker = 600 + (600 * 0.2) = $720

    Standard direct labor cost per unit of product Scour = 720 : (40:3) = $54
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