Question

Flounder Company has gathered the following information about its product.

Direct materials. Each unit of product contains 5.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.60 pounds. Materials cost $3 per pound, but Flounder always takes the 2.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound.

Direct labor. Each unit requires 2.00 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Flounder’s employees is $12.60. Payroll taxes and fringe benefits are an additional $3.00 per hour.

Manufacturing overhead. Overhead is applied at a rate of $6.10 per direct labor hour.

Compute Flounder’s total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit

$

Answer 1

Thank you

Answer: $18.14 Direct materials Direct zabor manufacturing overhead = $32.76 $ 12.81 Total standard Cost per unit = 63.41 working note Direct materials Pounds per unit = 5 +0.6 5.6 ( Rate per unit = 3x (1-0.02) +0:30 3.24 standard direct materials = 5.683124 = $18. 144 Direct Labori 114 Laber hours per unit = 2t0l - 21 hours Rate per unit = 12.6+3 = $15.6 Standard Direct Laby = 211 hours x $15.6 - $32.76 manufacturing overhead! Labor hours per unit pater per tentang & standard moth = = = 2.1 hours $6.1 2.11 6.1 $ 12.81

Please rate if it is helpful to you