Question

Send to Gradebook < Prev I Next > --/18 Question 2 View Policies Current Attempt in Progress 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 0.70 pounds. Materials cost $5 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. Direct labor. Each unit requires 2.40 hours of labor. Setup, cleanup and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $14.00. Payroll taxes and fringe benefits are an additional $3.70 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.00 per direct labor hour. Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, e., 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

Calculate standard cost per unit as follows: B А 1 Particulars Amount 2 Total pound per unit (Pounds required per unit +Normal wastage) | 3.8 3 Material cost per pound $ 5.00 4 Less: Cash discount received @ 5% $ 0.25 5 Net Price per pound of material $ 4.75 6 Add: Freight cost per pound $ 0.45 7 Total cost per pound $ 5.20 8 Total Material cost per unit S 19.76 2.4 0.1 2.5 10 Labor hours per unit 11 Setup. Clean and downtime per unit 12 Total Labor hours per unit 13 Labor rate per hour (Hourly pay + payroll taxes and fringe benefits) 14 Labour cost per unit 15 Manufacturing overhead per unit 16 17 Standard Cost per unit $ 17.70 S 44.25 S 17.50 S 81.51 Calculations: B Amount =3.1+0.7 1 Particulars 2 Total pound per unit (Pounds required per unit +Normal wastage) 3 Material cost per pound 4 Less: Cash discount received @ 5% 5 Net Price per pound of material 6 Add: Freight cost per pound 7 Total cost per pound 8 Total Material cost per unit =B3*5% =B3-B4 0.45 =B5+B6 -B2*B7 2.4 0.1 10 Labor hours per unit 11 Setup. Clean and downtime per unit 12 Total Labor hours per unit 13 Labor rate per hour (Hourly pay + payroll taxes and fringe benefits) 14 Labour cost per unit 15 Manufacturing overhead per unit 16 17 Standard Cost per unit =B10+B11 =14+3.7 -B12*B13 =B12*7 =B8+B14+B15

For any doubts/queries, format changes requirements, please post in comment section. I would take up the same.