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Question - Kingbird 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 0.40 pounds. Materials cost $5 per pound, but Kingbird 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 Kingbird'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.
Required - Compute Kingbird's total standard cost per unit.
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