Question

A company is setting its direct materials and direct labor standard for its leading product. direct materials cost from the supplier are $8per square foot, net of purchase discount. freight in amount to $.10 per square foot. basic wages of the assembly line personnel are$18 per hr. payroll taxes are approx. 25% of wages. benefits amount to $4 per hr. how much is the direct materials cost standard per square foot?

Answer 1

Direct materials cost standard per square foot

Direct materials cost standard per square foot consisting of the direct materials cost from the supplier plus the Freight costs per square foot.

Therefore, the Direct materials cost standard per square foot = Direct materials cost from the supplier + Freight costs per square foot.

= $8.00 per square foot + $0.10 per square foot

= $8.10 per square foot

“Hence, the Direct materials cost standard per square foot would be $8.10 per square foot”