Question

WAHLAUDLIIG Weygandt, Managerial Accounting, 8e V ileyrLU Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Unit 8 Lab 330 1902A Question 1 Question 2 Question 3 Question 1 Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.20 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.80 pounds. Materials cost $2 per pound, but Stefani always takes the 3.00% cash discount all of its suppliers offer. Freight costs average $0.40 per pound. Review Score Review Results by Study Objective Direct labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $11.60. Payroll taxes and fringe benefits are an additional $2.50 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.70 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 units Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Materials
Cost per pound (a)	$2.34
[$2 - (3% x $2) + $0.40]
Pounds per unit (b)	5
(4.20 + 0.80)
(a) x (b)		$11.70
Labor
Cost per hour (a)	$14.10
($11.60 + $2.50)
Hours per unit (b)	1.8
(1.70 + 0.1)
(a) x (b)		$25.38
Overhead
(1.70 + 0.1) x $4.70		$8.46
Total standard cost per unit		$45.54