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Garrigus Corporation
Garrigus Corporation is developing direct labor standards. The basic direct labor wage rate is $14.00 per hour. Employment taxes are 11% of the basic wage rate. Fringe benefits are $3.48 per direct labor-hour. A particular product requires 0.64 direct labor-hours per unit. The allowance for breaks and personal needs is 0.06 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.18 direct labor-hours per unit.
The standard rate per direct labor-hour should be:
$21.02
$19.02
$23.52
$21.52
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