Asked on 12 Jan

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 are 0.60 pounds. Materials cost $ 5 per pound, but Stefani always takes the 4.00 % cash discount all of its suppliers offer. Freight costs an average of $ 0.40 per pound.

Direct labor. Each unit requires 1.00 hours of labor. Setup, cleanup, and downtime average about 0.20 hours per unit. The average hourly pay rate of Stefani’s employees is $ 10.00. Payroll taxes and fringe benefits are an additional $ 3.90 per hour.

Manufacturing overhead. Overhead is applied at a rate of $ 4.50 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.)



Answered on 12 Jan

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