Theresa​ Corporation, which manufactures​ baskets, is developing direct labor standards. The basic direct labor rate is​ $21.00

Answer:

The standard rate for direct labor hours is $27.1

Explanation:

This rate encompasses the hourly wage, payroll taxes, and additional benefits. For Theresa Corporation,

We know that

The basic direct labor rate is $21.00 per hour

Payroll Taxes consist of 10% of the basic direct labor rate, i.e., 10% of $21.00 = $2.10 per hour

Fringe Benefits are $4.00 per hour.

Thus, the standard rate for direct labor hours = $21.00 + $2.10 + $4.00 = $27.1