Exercise 23-3 Your answer is incorrect. Try again. Stefani Company has gathered

Question

Exercise 23-3 Your answer is incorrect. Try again. Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.20 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.70 pounds. Materials cost $1 per pound, but Stefani always takes the 2.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani's employees is $12.30. Payroll taxes and fringe benefits are an additional $2.40 per hour. Manufacturing overhead. Overhead is applied at a rate of $6.60 per direct labor hour. Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit 44.35 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

STANDARD COST PER UNIT: Material: Material required per unit 4.2 pounds Add: Normal wastage 0.7 pounds Total material Qty per unit 4.9 Price ($1.00-2%) 0.98 Add: Freight charges per unit 0.45 Raw Material cost per pound 1.43 Material cost per unit (4.9 pounds @1.43) 7.007 Labour: Labour houur per unit 1.6 Add: Dwontime hours 0.2 Total Labour hour per unit 1.8 Labour rate per hour including taxes (12.30+2.40) 16.7 Labour ccost per unit 30.06 Overheads 1.8 labour hours@ $6.60 per hour 11.88 Total Standard cost per unit 48.947

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