Question
Jennifer Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.4 pounds of materials. The average waste and
Jennifer Company has gathered the following information about its product.
Direct materials: Each unit of product contains 3.4 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.6 pounds. Materials cost $5 per pound, but Jennifer always takes the 4% cash discount all of its suppliers offer. Freight costs average $0.40 per pound.
Direct labor. Each unit requires 1.0 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Jennifers employees is $10.0. Payroll taxes and fringe benefits are an additional $3.9 per hour.
Manufacturing overhead. Overhead is applied at a rate of $4.5 per direct labor hour.
Compute Jennifers total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.)
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