Question
Donna Company has gathered the following information about its product. Direct materials : Each unit of product contains 3.1 pounds of materials. The average waste
Donna Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.1 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.9 pounds. Materials cost $ 2 per pound, but Donna always takes the 4% cash discount all of its suppliers offer. Freight costs average $ 0.45 per pound. Direct labor. Each unit requires 1.3 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Donnas employees is $ 12.5. Payroll taxes and fringe benefits are an additional $ 2.4 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 7.2 per direct labor hour. Compute Donnas total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.)
Total standard cost per unit | $ enter the total standard cost per unit in dollars rounded to 2 decimal places |
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