ECONOMICS

Detailed explanation-1: -The per-unit standards for direct labor are 2 direct labor hours at $15 per hour.

Detailed explanation-2: -Calculate the direct labor hourly rate The hourly rate is obtained by dividing the value of fringe benefits and payroll taxes by the number of hours worked in the specific payroll period.

Detailed explanation-3: -The standard direct labor time to complete one job is eight hours minus one hour, or seven hours. The direct labor standard price acts as a benchmark for your direct labor costs. You calculate the standard price by multiplying the direct labor hourly price by the standard job completion time.

Detailed explanation-4: -Direct labor cost per unit = direct labor hourly rate X time for producing one unit. First, you need to determine the direct labor hourly rate by dividing the labor cost by the number of hours worked.