Question

Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.30 pounds. Materials cost $ 2 per pound but Stefani always takes the 4.00 % cash discount all of its suppliers offer. Freight costs average $ 0.45 per pound. Direct labor. Each unit requires 1.30 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani's employees is12.50.Payroll taxes and fringe benefits are an additional $ 2.40 per hour Manufacturing overhead. Overhead is applied at a rate of $ 7.20 per direct labor hour Compute Stefani's total standard cost per unit. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit s

Answer 1

Total standard cost per unit includes direct material cost, direct labor cost and manufacturing overhead. Normal waste and spoilage is also part of standard cost of the product.