What is sofies total standard cost per unit

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Reference no: EM132516425

Sofie Industries gathered the following budgeted information about its product:

  • Each unit of product contains 5 kg of materials at a cost of $8 per kilogram. The average waste and spoilage per unit produced under normal conditions is 0.30 kg. Freight costs average $0.80 per kilogram.
  • Each unit requires 3 hours of labour. Rest periods and cleanup average 0.20 hours per unit and set-up time averages 0.40 hours. The average pay rate of Sofie's employees is $13 per hour with an additional $2.00 per hour for payroll taxes and benefits.
  • Manufacturing overhead is applied at a rate of $8 per direct labour hour.

Question 1: What's Sofie's total standard cost per unit.

Reference no: EM132516425

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