Exer 11-3

Stefani Company has gathered the following information about its product.

Direct materials.

Each unit of product contains 4.5 pounds of materials.

The average waste and spoilage per unit produced under normal conditions is 0.5 pounds.

Materials cost $5 per pound, LESS a 2% cash discount.

Freight costs average $0.25 per pound.

Direct labor.

Each unit requires 2 hours of labor.

Setup, cleanup, and downtime average 0.4 hours per unit.

The average hourly pay rate is $12 per employee.

Payroll taxes & fringe benefits are an additional $3 per hour.

Manufacturing overhead.

Overhead is applied at a rate of $7 per direct labor hour.

Instructions

Compute Stefanis total standard cost per unit.

Direct Materials	YOUR calculation (What # x What #)	Answer (across)
Cost per pound			Cost per pound
Pounds per unit			Pounds per unit
Total Down	Cost per pound (line1 x pounds per unit (line2) =

Direct Labor	YOUR calculation (What # x What #)	Answer (across)
Cost per hour			Cost per hour
Hours per unit			Hours per unit
Total Down	Cost per hour (line1 x hours per unit (line2) =

Mfg Overhead	YOUR calculation (What # x What #)	Answer (across)
Hours x Rate			Overhead per unit

Total Standard Cost per Unit *(from above)		*Note: from above does not indicate pray for your answer BUT it couldnt hurt! (ANYTHING (legal) that helps you finish college with the LEAST debt is good thing).
Direct Materials
Direct Labor
Overhead
Total Unit Cost