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

Question

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. Compute Stefani's total standard cost per unit. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit s

Explanation / Answer

Particulars Amt Material Cost               25.44 Labor               29.70 Overhead (2.2 x 6.90)               15.18 Standard Cost               70.32 Material Cost Calculation Particulars Amt Material Qty (4.6 +0.2)                  4.80 Material Cost (5 x 97%) + 0.45                  5.30 Material Per Unit               25.44 Labor Cost Calculation Particulars Amt Hours (2.10 + 0.10)                  2.20 Per Hour (10.40 +3.10)               13.50 Labor Per Unit               29.70

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