Kimm Company has gathered the following information about its product. Direct ma

Question

Kimm Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.40 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.60 pounds. Materials cost $1 per pound, but Kimm always takes the 4.53% cash discount all of its suppliers offer. Freight costs average $0.34 per pound. Direct labor. Each unit requires 2.60 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Kimm

Explanation / Answer

Hi, Please find the answer as follows: DM = (4.4+.60)*1*(1-.0453) + .34*(4.4+.60) = 6.47 DL = (2.60 + .20)*10.10 + 3.20*(2.60+.20) = 37.24 Oh = 7.4*(2.60+.20) = 20.72 Total standard cost per unit = 6.47 + 37.24 + 20.72 = 64.43 Thanks.

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.