In: Accounting
Stefani Company has gathered the following information about its
product.
Direct materials: Each unit of product contains 3.20
pounds of materials. The average waste and spoilage per unit
produced under normal conditions is 0.10 pounds. Materials cost $1
per pound, but Stefani always takes the 1.00% cash discount all of
its suppliers offer. Freight costs average $0.40 per pound.
Direct labor. Each unit requires 2.90 hours of labor.
Setup, cleanup, and downtime average 0.20 hours per unit. The
average hourly pay rate of Stefani’s employees is $10.20. Payroll
taxes and fringe benefits are an additional $3.70 per hour.
Manufacturing overhead. Overhead is applied at a rate of
$4.90 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 | $enter the total standard cost per unit rounded to 2 decimal places |
Please point out the final answers!