Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $ 5.00 per square foot from the supplier. Delivery costs are $ 0.40 per square foot. Carpenters' wages are $ 20.00 per hour. Payroll costs are $ 3.00 per hour, and benefits are $ 5.00 per hour. How much is the direct materials standard cost per square foot?

Standard cost direct material= $5.4 per square foot

Explanation:

Giving the following information:

The current cost of cedarwood is $ 5.00 per square foot from the supplier. Delivery costs are $ 0.40 per square foot.

When calculating the standard costs of direct materials, you need to take into account the freight in costs.

Standard cost direct material= 5 + 0.4

Standard cost direct material= $5.4 per square foot

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