Stefani Company has gathered the following information about its product.
Direct materials:
...
Business, 21.07.2021 16:40 shaylawaldo11
Stefani Company has gathered the following information about its product.
Direct materials:
Each unit of product contains 4.60 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.20 pounds. Materials cost $5 per pound, but Stefani always takes the 3.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound
Direct labor:
Each unit requires 2.10 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $10.40. Payroll taxes and fringe benefits are an additional $3.10 per hour Manufacturing overhead. Overhead is applied at a rate of $6.90 per direct labor hour.
Required:
Compute Stefani's total standard cost per unit.
Answers: 3
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