Lisa 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 $ 5 per pound, but Lisa always takes the 5% cash discount all of its suppliers offer. Freight costs average $ 0.45 per pound. Direct labor. Each unit requires 2.4 hours of labor. Setup, cleanup, and downtime average 0.1 hours per unit. The average hourly pay rate of Lisas employees is $ 14.0. Payroll taxes and fringe benefits are an additional $ 3.7 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 7.0 per direct labor hour.