Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ayayai 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

image text in transcribed

Ayayai 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 spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $1 per pound, but Ayayai always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Ayayai's employees is $10.60. Payroll taxes and fringe benefits are an additional $3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Philip E. Fess

19th Edition

0538869720, 978-0538869720

More Books

Students also viewed these Accounting questions

Question

Conduct a needs assessment. page 283

Answered: 1 week ago