Chapter 14

ABC Company's budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units respectively. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 35% of the next month's budgeted production as raw material inventory each month. ABC Company currently pays a standard rate of $1.4 per pound for raw materials. Each unit should be produced in 30 minutes of direct labor time at a standard direct labor rate of $11 per hour. Manufacturing overhead is applied at the standard rate of $13 per direct labor hour. Required: Calculate the standard cost per unit for ABC Company. (Round your answer to 2 decimal places.) Standard cost per unit