Question

Question 1 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 spolage per unit produced under normal conditions is 0.90 pounds Materials cost $5 per pound, but Stefan Sways takes the 5.00% cash discount all of its suppliers offer. Freight costs average 50.45 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 Stefan's employees is $14.00. Payroll taxes and fringe benefits are an additional 53.70 per hour Marfacturing overhead Overhead is applied at a rate of 57.00 per direct laborhout Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, s. 125.) Total standard cost per unit $ e Textbook and Media

Answer 1

Computation of Standard Cost per Unit
Direct materials Cost
Total Pound per Unt (a) (3.10 Pound 0.90)	4 Pound
Materials cost per pound (b) (5-(5*5%)+0.45)	5.2
Direct material Cost per Unit (c=Axb)		$20.80
Direct labor:
Labour Hours Require per unit (d) (2.40 Hour+ 0.10 Hour)	2.5 Hour
Rate per hour (14+3.70) ( e)	17.7
Direct labor per unit (f=dXe)		$44.25
Manufacturing overhead:
Labour Hours Require per unit (g)	2.5 Hour
Rate per hour (h)	$7
Manufacturing overhead per unit(i=gxh)		$17.50
Total Standard cost per Unit (c+f+i)		$82.55