What are the standard direct labor-hours per unit for Garrigus Corporation?
Garrigus Corporation is developing direct labor standards. The basic direct labor wage rate is $18 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $3.44 per direct labor-hour. A particular product requires 0.69 direct labor-hours per unit. The allowance for breaks and personal needs is 0.05 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.18 direct labor-hours per unit.
The standard direct labor-hours per unit should be:
5.42
0.92
3.42
2.42