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Brass Creations Co. Direct Labor Standard Cost, Evaluation

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Brass Creations Co. Makes decorative candle pedestals. An industrial engineer consultant developed ideal time
standards for one unit of the Cambridge model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates;

Worktype 1 0.19 hour @12.46 per hour
Worktype 2 0.34 [email protected] per hour
Worktype 3 0.60 [email protected] per hour

a. Using the preceding data, calculate the direct labor cost for a Cambridge model pedestal. (Do not round your intermediate calculations. Round final answer to 2 decimal places.)

Direct labor cost

b. Would it be appropriate to use the cost calculated in part as a standard cost for evaluating direct labor performance and valuing inventory?
Yes or no

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  • MSc, University of Virginia
  • PhD, Georgia State University
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