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Compute stefani total standard cost per unit

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Reference no: EM131763003

Question - Stefani Company has gathered the following information about its product.

Direct materials: Each unit of product contains 3.90 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.20 pounds. Materials cost $2 per pound, but Stefani always takes the 1.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound.

Direct labor. Each unit requires 2.60 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani's employees is $13.40. Payroll taxes and fringe benefits are an additional $3.10 per hour.

Manufacturing overhead. Overhead is applied at a rate of $6.10 per direct labor hour.

Compute Stefani's total standard cost per unit.

Reference no: EM131763003

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