Daughdrill Corporation is developing direct labor standards. The basic direct labor wage rate is $10.95 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $4.00 per direct labor-hour. The standard rate per direct labor-hour should be

To calculate the standard rate per direct labor-hour, we need to consider the basic wage rate, employment taxes, and fringe benefits.

Given:

Basic direct labor wage rate = $10.95 per hour

Employment taxes = 9% of the basic wage rate

Fringe benefits = $4.00 per direct labor-hour

First, let's find the employment taxes:

Employment taxes = Basic wage rate × Tax rate

Employment taxes = $10.95 × 9%

Employment taxes = $0.9855 (rounded to $0.99 per hour)

Now, let's calculate the total cost of labor per hour, including employment taxes and fringe benefits:

Total cost of labor per hour = Basic wage rate + Employment taxes + Fringe benefits

Total cost of labor per hour = $10.95 + $0.99 + $4.00

Total cost of labor per hour = $15.94

Therefore, the standard rate per direct labor-hour, considering the basic wage rate, employment taxes, and fringe benefits, should be $15.94.