Marigold Corp. produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.04 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct labor rate per hour is O $3.00. O $3.54. O $2.94. O $3.48.



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