Compute standard materials cost per unit of product. (Obj. 2).

Zelmos is a product manufactured by Zelna Company. The company is establishing standard costs for the product, which requires two raw materials. A review of production records shows that although engineering standards call for 3 pounds of raw material 28A for each unit of Zelmos produced, almost invariably an average of 3.1 pounds is required for each unit produced during a month. Zelna has a con tract with the suppher of material 28A to supply the raw material for

$6 per pound for the next 12 months. Engineering specifications also call for 3 pounds of the other ingredient, raw material 34AK. Actual usage of raw material 34AK has ranged from 2.98 pounds to 3.01 pounds per unit of Zelmos. During the past year, material 34AK cost

$1.04 per pound, but is expected to increase to an average of $1.07 per pound during the coming year. Compute the standard cost of each raw material per unit of Zelmos for the coming year.

LO.1