Stefani Company has gathered the following information about its product. Stefan

Question

Stefani Company has gathered the following information about its product.

Stefani Company has gathered the following information about its product.

Direct materials: Each unit of product contains 3.40 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $2 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound.

Direct labor. Each unit requires 2.80 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani’s employees is $13.10. Payroll taxes and fringe benefits are an additional $3.00 per hour.

Manufacturing overhead. Overhead is applied at a rate of $5.90 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

Explanation / Answer

Calculate standard cost per unit :

Material (3.5*2.35) 8.23 Labour (2.9*16.10) 46.69 Overhead (2.9*5.9) 17.11 Total standard cost per unit 72.03

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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