How much is the direct material cost standard


A company is setting its direct materials and direct labor standards for its leading product. Materials costs from the supplier are $5 per square foot, net of purchase discount. Freight-in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $10 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $2 per hour. How much is the direct material cost standard (per square foot)?

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Accounting Basics: How much is the direct material cost standard
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