Question

WP = FA19 ACC202-31885-Young > Assignments > Chapter 11 Homework Chapter 11 Homework 2019 Fall Term Account Home e Textbook Send to Gradebook < Prev < Prev Next > Next > Dashboard Modules Grades Question 8 --/10 Courses Wiley Accounting Weekly Updates View Policies Current Attempt in Progress Calendar Discussions Stefani Company has gathered the following information about its product. Conferences Inbox Collaborations Direct materials: Each unit of product contains 4.60 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.40 pounds. Materials cost $5 per pound, but Stefani always takes the 3.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. WileyPLUS Support Get HELP SOS Assignments Direct labor. Each unit requires 2.10 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $10.40. Payroll taxes and fringe benefits are an additional $3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $6.90 per direct labor hour. Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $ e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer Send to Gradebook < Prev Next >

Answer 1

Answer Computation of Stefani's Total Standard Cost Per Unit Standard Cost Per Unit = Direct Materials + Direct Labor + Manufacturing Overhead = $26.50 + $29.70 + $15.18 = $71.38 Explanations Direct Materials Total Standard Cost = Cost per Compound x Pounds Per Unit = ($5 - ($5 x 3%) + $0.45] x [4.60+ 0.40] = $5.30 x 5 = $26.5 Direct Labor Total Standard Cost = Cost per Hour x Hours Per Unit = ($10.40 + $3.10] x [2.10 hrs +0.10 hrs] = $13.50 x 2.20 hrs = $29.70 Manufacturing Overhead Total Standard Cost = Hour per Unit x Rate per Direct Hours = 2.20 hours x $6.90 = $15.18