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Answers and explanation please. Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.20 kg of materials.
Answers and explanation please.
Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.20 kg of materials. The average waste and spoilage per unit produced under normal conditions is 0.80 kg. Materials cost $8 per kilogram, but Muhsin always takes the 4% cash discount that all of its suppliers offer. Freight costs average $0.25 per kilogram. Direct labour: Each unit requires 4 hours of labour. Set-up, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Muhsin's employees is $11. Payroll taxes and fringe benefits are an additional $6 per hour. Manufacturing overhead: Overhead is applied at a rate of $8 per direct labour hour. Calculate Muhsin's total standard cost per unit. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) Total standard cost per unit $Step by Step Solution
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