Compute total standard cost per unit

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Reference no: EM13863500

Kimm Company has gathered the following information about its product.

Direct materials: Each unit of product contains 3.70 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.50 pounds. Materials cost $4 per pound, but Kimm always takes the 3.74% cash discount all of its suppliers offer. Freight costs average $0.43 per pound.

Direct labor. Each unit requires 3.00 hours of labor. Setup, cleanup, and downtime average 0.13 hours per unit. The average hourly pay rate of Kimm’s employees is $10.60. Payroll taxes and fringe benefits are an additional $2.70 per hour.

Manufacturing overhead. Overhead is applied at a rate of $4.60 per direct labor hour.

Compute Kimm’s total standard cost per unit.

Reference no: EM13863500

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