Nadia Corporation, which manufactures straw hats, is developing direct labour standards. The basic direct labour rate is $10.00 per hour. Payroll taxes are 12% of the basic direct labour rate, while fringe benefits such as vacation and health care insurance are $4.00 per hour. What is the standard rate per direct labour hour?

Select one:

a. $15.20

b. $10.00

c. $11.20

d. $14.00

Please explain