Exercise 24-03 (Video)

Wildhorse Company has gathered the following information about its product.

Direct materials: Each unit of product contains4.20pounds of materials. The average waste and spoilage per unit produced under normal conditions is0.80pounds. Materials cost $2per pound, but Wildhorse always takes the3.00% cash discount all of its suppliers offer. Freight costs average $0.40per pound.

Direct labor.Each unit requires1.70hours of labor. Setup, cleanup, and downtime average0.10hours per unit. The average hourly pay rate of Wildhorse's employees is $11.60. Payroll taxes and fringe benefits are an additional $2.50per hour.

Manufacturing overhead.Overhead is applied at a rate of $4.70per direct labor hour.

Compute Wildhorse's total standard cost per unit.(Round answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit