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tefani Company has gathered the following information about its product.
Direct materials: Each unit of product contains 5.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.00 pounds. Materials cost $3 per pound, but Stefani always takes the 2.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 2.00 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $12.60. Payroll taxes and fringe benefits are an additional $3.00 per hour. Manufacturing overhead. Overhead is applied at a rate of $6.10 per direct labor hour.
Problem 1: Compute Stefani's total standard cost per unit.
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