Asked by Sarah Gascon on Jul 14, 2024
Verified
The standard direct labour rate should not include fringe benefits.
Standard Direct Labour Rate
The predetermined cost per hour for direct labor, used in budgeting and measuring operational efficiency.
Fringe Benefits
Additional compensation provided to employees beyond their normal wages or salaries, such as health insurance, retirement plans, and paid vacations.
- Comprehend the utilization of standard costs within manufacturing overhead expenses.
Verified Answer
YL
Yelisa LeivaJul 14, 2024
Final Answer :
False
Explanation :
The standard direct labour rate often includes fringe benefits as part of the total cost of labor, to accurately reflect the total cost of employing labor.
Learning Objectives
- Comprehend the utilization of standard costs within manufacturing overhead expenses.
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