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Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by
Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $20.00 per hour. Payroll costs are $3.00 per hour, and benefits are $6.00 per hour. How much is the direct labor standard cost per hour?
A. $23.00
B. $29.00
C. $20.00
D. $9.00
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