Question

CALCULATOR PRINTER VERSION BACK NEXT Exercise 11-3 (Video) Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 2.20 pounds of materials. The average waste and spolage per unit produced under normal conditions is 0.00 pounds. Materials cost $2 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer Freight costs average $0.25 per pound Direct Gabor. Each unit requires 2.10 hours of labor. Setup, deanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $13.20. Payroll taxes and fringe benefits are an additional $2.20 per hour Manufacturing overhand. Overhead is applied at a rate of $4.80 per direct labor hour Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, 1.25) Total standard cost per unit LINK TO TEXT VIDEO SIMILAR EXERC Question Attempts: 0 of 3 used SAVE FOR LATER JONIT ANSWER

Answer 1

direct materials	$8.60
direct labor	33.88
direct manufacturing overhead	10.56
total cost	$53.04

working:

direct materials:

pounds per unit = 3.20 +0.80

=>4.00 pounds.

cost per unit = 4 pounds*$2

=>$8.00

amount paid per unit

=>$8.00*(95%)........(since 5% discount is given)

=>$7.60.

freight paid = $0.25*4 pounds

=>$1.00

total direct material cost per unit =$7.60+1.00

=>$8.60.

direct labor

=>total time * total rate per hour

=>(2.10+0.10) *(13.20+2.20)

=>$33.88.

manufacturing overhead:

$4.80*2.20 labor hours

=>$10.56