Question
Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.6-gallon can of chemical call for
Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.6-gallon can of chemical call for 1.2 gallons of material and 1.7 hours of labor. (1.2 gallons of material are needed to produce a 0.6-gallon can of product due to evaporation.) The standard cost per gallon of material is $6. The standard cost per hour for labor is $9.01. Overhead is applied at the rate of $7.52 per can. Expected production is 20,700 cans with fixed overhead per year of $52,164 and variable overhead of $4 per unit (a 0.6-gallon can). During 2015, 24,000 cans were produced; 33,600 gallons of material were purchased at a cost of $234,864; 31,400 gallons of material were used in production. The cost of direct labor incurred in 2015 was $285,282 based on an average actual wage rate of $8.13 per hour. Actual overhead for 2015 was $216,600.
Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) |
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